Competition Aspects in Mergers & Acquisitions
Research Paper on Competition vis-à-vis Mergers & Acquisitions
Abstract: Combination is a relatively new concept in Indian competition law. Although its roots can be traced to the erstwhile antitrust legislation, the Monopolies and Restrictive Trade Practices Act, the regulations governing combination control was put into force only in 2011. This paper thus attempts to analyse the combination regulation mechanism operating in India, with special focus on specific provisions of the Competition Act, 2002 (“The Act”) and Combination Regulations, 2011 in their recently amended form.
Introduction:
The Monopolies and Restrictive Trade Practices Act, 1969 (‘MRTP Act’) was India’s first antitrust legislation which established a quasi-judicial body for investigating cases of unfair and restrictive trade practices. The concept of combination control was not explicitly recognized in the MRTP Act, nor was it expanded upon.
Eventually, the Ministry of Corporate Affairs vide its Notification dated August 28, 2009 repealed the MRTP Act. There were primarily two reasons behind the repeal of the MRTP Act and its subsequent replacement by the Act. Firstly, with the growing complexity of industrial structure, it was felt that the interference of the Government through the MRTP Act in the investment decisions of large companies had a deleterious effect on Indian industrial growth. Secondly, antitrust policy was evolving from an anti-monopoly to pro-competition approach worldwide and Indian competition policy needed to mirror this changed dynamic.
The government of India enacted Competition Act, 2002 on 13th January 2003. The Competition Act aims to imbibe the social and economic philosophy enshrined in the Directive Principles of State Policy contained in the Constitution which seeks to prevent the concentration of wealth and means of production to the common detriment. Also the Act seeks to ensure free and fair competition in India by prohibiting trade practices which
Abstract: Combination is a relatively new concept in Indian competition law. Although its roots can be traced to the erstwhile antitrust legislation, the Monopolies and Restrictive Trade Practices Act, the regulations governing combination control was put into force only in 2011. This paper thus attempts to analyse the combination regulation mechanism operating in India, with special focus on specific provisions of the Competition Act, 2002 (“The Act”) and Combination Regulations, 2011 in their recently amended form.
Introduction:
The Monopolies and Restrictive Trade Practices Act, 1969 (‘MRTP Act’) was India’s first antitrust legislation which established a quasi-judicial body for investigating cases of unfair and restrictive trade practices. The concept of combination control was not explicitly recognized in the MRTP Act, nor was it expanded upon.
Eventually, the Ministry of Corporate Affairs vide its Notification dated August 28, 2009 repealed the MRTP Act. There were primarily two reasons behind the repeal of the MRTP Act and its subsequent replacement by the Act. Firstly, with the growing complexity of industrial structure, it was felt that the interference of the Government through the MRTP Act in the investment decisions of large companies had a deleterious effect on Indian industrial growth. Secondly, antitrust policy was evolving from an anti-monopoly to pro-competition approach worldwide and Indian competition policy needed to mirror this changed dynamic.
The government of India enacted Competition Act, 2002 on 13th January 2003. The Competition Act aims to imbibe the social and economic philosophy enshrined in the Directive Principles of State Policy contained in the Constitution which seeks to prevent the concentration of wealth and means of production to the common detriment. Also the Act seeks to ensure free and fair competition in India by prohibiting trade practices which