Competition Act 2002

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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

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

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

Constitutional Validity of Certain provisions of Competition Act

In a landmark decision on 10 April 2019, a division bench of the High Court of Delhi (Delhi HC), pronounced a judgment relating to a batch of petitions filed by car manufacturers, which challenged the constitutionality of certain provisions of the Competition Act, 2002 (Act).

The genesis of the matter arose from the Competition Commission of India’s (CCI) findings in what has come to be known as the Auto Parts Case. The complaint alleged that three car manufacturers, M/s. Honda Siel Cars India Ltd, Volkswagen India Pvt. Ltd and Fiat India Automobiles Limited, restricted free availability of spare parts in the open market, which caused a denial of market access for independent repairers. This was in addition to other anti-competitive effects including high prices of spare parts and repair and maintenance services for automobiles.
Continue Reading Landmark Decision: Constitutional Validity of Certain Provisions of the Competition Act

sixth amendment to competition law india

In an attempt to further streamline the merger control process, the Competition Commission of India (CCI) has for the sixth time[1] since the introduction of the merger control regime in India, amended the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Combination Regulations).

The amendments to the Combination Regulations, notified on 9 October 2018(Amendment Regulations), reiterate the CCI’s constant endeavour to bring greater clarity and transparency to the merger control process.
Continue Reading Sixth Set of Amendments to the Combination Regulations

Rajasthan Cylinders and Containers Ltd v Union of India & Anr - Competition Law 

Can enterprises be in violation of the Competition Act, 2002 (Competition Act) when prevailing market conditions are themselves not conducive to a competitive market?

This is an interesting question relating to enforcement of the Competition Act, which was dealt with by the Hon’ble Supreme Court of India (Supreme Court) in the case of Rajasthan Cylinders and Containers Ltd v Union of India & Anr[1].

The case arose from a tender floated by Indian Oil Corporation Ltd (IOCL) for the purchase of LPG cylinders. Curiously, it was not IOCL (the buyer) that had approached the Competition Commission of India (CCI) alleging contravention of the Competition Act. In fact, it was an LPG cylinder manufacturer that approached the CCI challenging the tender conditions imposed by IOCL. However, while the case against IOCL was closed, during the investigation of the aforesaid tender, the Director General (DG) noticed a similar pattern in a bid submission by LPG cylinder manufacturers. This chain of events led the CCI to initiate an inquiry, on its own motion, into the alleged cartelisation and bid-rigging by LPG cylinder manufacturers.
Continue Reading Supreme Court Builds on Excel Crop Care Judgment to Examine Oligopsony in a Cartel Matter

The Competition Commission of India (CCI) has, for the sixth time since the introduction of the merger control regime in India, proposed amendments (Proposed Amendments) to the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Combination Regulations).

The Combination Regulations are the principal regulations governing the merger notification process in India.[1] Some of the changes proposed by the CCI seem to be aimed at addressing issues that have arisen in the implementation of the merger control regime over the past couple of years whereas others seek to incorporate procedures that are already being followed by the CCI in practice. The changes, currently in draft form while the CCI seeks stakeholder views , are highlighted in brief below.
Continue Reading CCI Proposes Amendments to Combination Regulations