CCI’s Draft (Combinations) Regulations: Key Takeaways

The Competition Commission of India (CCI) has published the draft CCI (Combinations) Regulations, 2023 (Draft M&A Regulations) on 5 September 2023 and has invited stakeholder comments, to be submitted by 25 September 2023. The Draft M&A Regulations would replace the current CCI (Procedure in regard to the transactions of business relating to combinations) Regulations, 2011 (Combinations Regulations, 2011).Continue Reading CCI’s Draft (Combinations) Regulations: Key Takeaways

Introduction

2022 was an eventful year for competition law in India. The Competition Commission of India (CCI) operated optimally approving combinations notified before it in reasonable timelines, conducting significant dawn raids, passing notable orders that made international headlines, and conducting market studies. The anticipated amendments to the Competition Act, 2002 (Act) were discussed ad nauseum in conference rooms and across coffee tables. Notable also is that the CCI has not had quorum for the formal conduct of business since Chairperson, Mr. Ashok Gupta demitted office on 24 October 2022, which has resulted in deals worth billions stuck without clearance.Continue Reading What’s Happening? 2022 Wrap of Competition Law in India

On 19 October 2022, the Competition Commission of India (the CCI) imposed heavy penalties[1] on MakeMyTrip India Private Limited (MMT) and Ibibo Group Private Limited (collectively, MMT-Go) and directed MMT-Go to, inter alia, modify its agreements with hotels to remove parity and exclusivity related obligations. Legitimacy of price parity clauses (also referred to as ‘best-price’ or ‘most favoured nation’ or MFN clauses) has been one of the highly debated ‘modern’ antitrust issues across many jurisdictions.Continue Reading Clarity on parity? Potential implications of the CCI’s order against MMT-Go for intermediation platforms

Competition Law

The Ministry of Corporate Affairs (“MCA”) has extended the suspension of the 30-day deadline for merger filings

India’s competition regime is mandatory and suspensory. A transaction cannot be completed (in whole or in part) unless the Indian competition regulator grants its approval.Continue Reading Update on Indian Merger Control Regime: The Small Target Exemption and pitfalls around jurisdictional thresholds for merger filings before the CCI

Penalty for penalty - CCI penalises Maruti Suzuki for indulging in resale price maintenance
In an order published on August 23, 2021, the Competition Commission of India (CCI) penalised Maruti Suzuki India Limited (MSIL) to the tune of INR 2 billion (approx. USD 27 million) for restricting and controlling the discounts offered by its dealers to the end consumers. Such conduct by India’s leading passenger vehicle manufacturer was held to be anti-competitive resale price maintenance (RPM), and thus violative of the provisions of the Competition Act, 2002 (as amended) (Competition Act).
Continue Reading Penalty for penalty: CCI penalises Maruti Suzuki for indulging in resale price maintenance

CCI issues interim order to relist FabHotels and TreeboIn an interim order dated 9 March 2021[1], the Competition Commission of India (“CCI”) has asked MakeMyTrip India Private Limited (“MMT”) and Ibibo Group Private Limited (“Ibibo”) to relist the hotels of Casa2Stays Private Limited (“FabHotels”) and Rubtub Solutions Private Limited (“Treebo”) on their platforms.

The CCI granted interim relief while adjudicating the applications filed by Treebo and FabHotels. The Competition Act, 2002 (as amended) (“Act”) gives power to the CCI to grant temporary injunction restraining any party from carrying on acts which are in contravention of certain provisions of the Act, until the conclusion of such inquiry or until further orders.
Continue Reading CCI issues interim order to relist FabHotels and Treebo

CCI notes to Form 1

The Competition Commission of India (CCI) has introduced updated guidance notes for drafting the short form merger filing i.e., Form I.  The guidance lists the scope of information and documents required to be submitted as part of the Form I notification that one files with the CCI. Some of the key changes to the guidance notes and their implications have been discussed below:Continue Reading Notes to Form I: A brief look at the changes to CCI’s explanatory notes

COVID -19 and Competition Law ConcernsIntroduction

The outbreak of the COVID -19 pandemic has disrupted business globally including, in some cases, the disrupters themselves. As companies around the world prepare to respond to the effects of this pandemic on their businesses, they must become aware of the challenges and opportunities that competition law present. Businesses that are expecting significant losses due to reduced revenue may look at cooperation with their competitors as the one way of overcoming these tough times. On the other hand, companies selling essential/scarce products such as medical supplies, may attempt to capitalise on this situation by increasing prices or bundling non-essential products with the essential ones. Whilst coordination between competitors (either by way of collaboration or through concerted practices) or imposition of unfair and/or discriminatory prices or conditions may seem to be an obvious and efficient way to respond to or benefit from the current challenges, companies need to be mindful of the fact that the provisions of the Competition Act, 2002 (the Competition Act) continue to apply even during the tough times, perhaps even more so.
Continue Reading COVID -19 and Competition Law Concerns