Competition regulator introduces DIY tool

The Competition Commission of India (CCI) has introduced a do-it-yourself (DIY) notifiability check tool for companies to find out if they need to notify the body about acquisitions or amalgamations. The DIY tool asks users a series of questions about the transaction and guides them along the way.

Competition lawyers called the DIY tool a great initiative that made the merger control process more visible and accessible. “Once determined that a merger clearance is required, the tool suitably directs the user, helping the user broadly to understand the procedure that would need to be adopted to submit the actual filing,” Reeti Choudhary, a partner who focuses on competition law at J Sagar Associates, told India Business Law Journal.

The tool is aimed at letting companies find out on their own in the event their merger is non-notifiable thus freeing up the regulator’s time from assessing such combinations. The CCI must be informed when the value of the acquired/merged assets is more than ₹3.5 billion (US$50 million) or the target company’s turnover is more than ₹10 billion.

“This tool not only covers the relevant provisions of the [Competition Act, 2002] but also covers the exemptions provided under the Competition Commission of India (Procedure in Regard to the Transaction of Business Relating to Combinations) Regulations, 2011, and the notifications issued by the Ministry of Corporate Affairs,” said Sagardeep Rathi, an associate partner at Khaitan & Co who focuses on competition law.