CCI imposes Rs.10,00,000 penalty on Cummins Inc. for Gun-jumping

The Competition Commission of India (CCI), has imposed a penalty of Rs.10,00,000 on Cummins Inc. (Cummins) for Gun-jumping by not notifying Cummins’ acquisition of Meritor Inc. (Meritor). Cummins communicated its notice to CCI in November, 2022; however, the parties had already consummated the acquisition back in August, 2022. Cummins contended that, there has been a bona fide error in assessing the applicability of the De Minimis Exemption Notification issued under Section 54 of the Competition Act, 2002 (Act). However, CCI noted that penalty under Section 43A of the Act will get attracted, on failure to give notice, irrespective of it being inadvertent or intentional.