The Competition Commission of India (CCI) has done away with certain disclosure requirements related to non-compete restrictions at the time of entities seeking approval for merger deals.
Deals beyond certain thresholds require clearance from the CCI, which keeps a tab on anti-competitive practices across sectors in the market place.
On Tuesday, the watchdog said it has decided to dispense with certain disclosure requirements in the combination notices. In this regard, regulations have been amended by the regulator.
The decision has been taken pursuant to stakeholders’ consultation and detailed examination of the efficacy of the present framework for examination of non-compete restrictions, entered into as a part of combinations, the CCI said in a release.
In competition law parlance, mergers and acquisitions are generally referred to as combinations.
“Parties to combination are no more required to give separate details regarding their non-compete restrictions, in the combination notice,” the release said.
Avaantika Kakkar, Partner & Head (Competition) at Cyril Amarchand Mangaldas, said the amendment is welcome.
“CCI has signalled that it will not review the provisions of non-compete arrangements as part of merger review. It is not, however, that the guidance on non-compete provisions has fallen away. This may continue to be a reference for such arrangements,” Kakkar said.
