A LEGAL ANALYSIS OF MERGERS & ACQUISITIONS UNDER THE COMPETITION ACT, 2002

AUTHORS – SANNA RAJPUT* & DR. NISHA SAIN**, LL.M. (MASTER OF LAWS) SCHOLAR* & PROFESSOR**, UNIVERSITY INSTITUTE OF LEGAL STUDIES, CHANDIGARH UNIVERSITY, MOHALI, PUNJAB, INDIA

BEST CITATION – SANNA RAJPUT & DR. NISHA SAIN, A LEGAL ANALYSIS OF MERGERS & ACQUISITIONS UNDER THE COMPETITION ACT, 2002, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (4) OF 2024, PG. 343-354, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The legal measures regarding M&A under the “Competition Act, of 2002” have indeed been very crucial for India to preserve competitive markets. This, together with the “Companies Act, 2013,” and the “Takeover Code,” also regards corporate growth and competition law within CCI in India. The Act requires notification of mergers in cases where they are likely to produce anti-competitive effects and will harm consumers. Nevertheless, many issues persist, like confusion over notification standards, new and developing markets, and inequalities in how the CCI conducts its review. The paper examines issues with the regulation process and presents potential amendments, including the clarification of thresholds and implementation of a dynamic, tiered notification system, as well as the enhancement of the review process and incorporation of further economic analysis techniques such as the Herfindahl-Hirschman Index (HHI). Increasing transparency, involving stakeholders, and integration of the international best practices of such countries as the U.S. as well as the EU may potentially improve the study of sector-specific guidelines in India. Because notification standards can be tightened up, remedies improved, and CCI capability developed, the framework will be more flexible in quickly evolving markets. Genesis of the problem Also, an analysis of the CCI’s jurisprudence in some of the seminal cases is informative of the concerns of economic efficiency and fairness in the context of competition.

Keywords: Competition Act, 2002; mergers and acquisitions; Competition Commission of India; competition law, corporate growth; consumer protection