CCI proposes amendments to combination regulations

New Delhi, May 26: The Competition Commission of India (CCI) has proposed changes to combination regulations to do away with the requirement for disclosing certain non-compete restrictions while seeking the watchdog's approval. Combinations, generally mergers and acquisitions beyond a certain threshold need clearance from the regulator under the Competition Act.

 

 

The CCI plans to omit part of the combination regulation that seeks information regarding non-compete restrictions agreed between the parties to combination and justification for the same. This would allow the parties flexibility in determining non-compete restrictions, while also reducing the information burden on them.

 

However, CCI yesterday said in a release that the parties will be responsible for ensuring that their non-compete arrangements are competition compliant. Competition concerns, if any, that may arise from non-compete restrictions can be looked into under Sections 3 and 4 of the Act, it added.

 

The regulator has been looking at non-compete restrictions stipulated in mergers and acquisitions while reviewing combinations. Notifying parties are required to furnish information on non-compete restrictions. Stakeholders can give their comments on the draft amendment to the combination regulations by 15 of next month.