NEW DELHI: The Competition Commission of India (CCI) has done away with certain disclosure requirements related to the norms governing non-compete restrictions when entities are seeking approval for merger deals. Currently, deals beyond a certain threshold require clearance from the CCI, the competition watchdog which keeps a tab on anti-competitive practices across sectors.
On Tuesday, the CCI said that it has decided to dispense with certain disclosure requirements in the combination notices and that relevant regulations have been amended. 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. “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,” said Avaantika Kakkar, Partner (Competition), Cyril Amarchand Mangaldas.