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REGULATION OF COMBINATIONS

 
COMPETITION LAW
 
Competition Law and its Evolution
The Competition Act, 2002
The CCI
Inquiry process by CCI
Anti-Competitive Agreement
Abuse of Dominance
Unfair Trade Practice
Regulation of Combinations
FAQ on Competition Law in India
LAW RELATING TO START UPS
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Combinations under the Competition Law means mergers, amalgamation of companies or acquisition or control, shares, voting rights or assets of one company by another company or group.

The Competition Act provides for regulation of combinations, so that such combinations do not have an adverse effect on competition (Section 6). The Act that:

  • No enterprise shall enter into any combination that is likely to cause an AAEC;

  • Any enterprise which enters into a combination shall give notice to the Commission in the prescribed form by disclosing the details of the proposed combination within thirty days from the date on which the proposed combination has been approved;

  • Any such combination shall not come into effect until 210 days have passed from the date on which the notice has been given to the Commission;

Procedure for Investigation of Combinations

  • The CCI can either by itself or through a Director General conduct an investigation to determine if the proposed combination is likely to cause appreciable adverse effect on competition within India;

  • If CCI is of the opinion that the combination is likely to have an appreciable adverse effect on competition then it will issue a show cause notice to the parties and they have to respond to it within 30 days of the receipt of notice;

  • After receipt of the response to the notice to show cause from the parties, the CCI can decide to call for a report from the Director General

  • Within seven working days of the receipt of the parties’ response or receipt of the DG’s report, the CCI will direct the parties to publish details of the combination to the public;

  • The CCI can invite affected or likely to be affected parties or members of the public to file written objections to the combination;

  • The CCI can call for additional information from the parties to the combination within 15 working days of the expiry of the time for filing objections by affected parties or members of the public;

  • The parties must file additional documents within a further 15 days;

  • Once it has received the requested information, the CCI must deal with the case within 45 working days;

The CCI takes a final decision to accept, reject or modify the combination within an additional working days of 180 days. If the CCI does not give its final decision, then the combination is deemed as approved.

 

For more information on Regulation of Combinations, please write to us at info@ssrana.com

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