MANU/PIBU/1356/2019

Department/Board : PIB

Date : 15.08.2019

Report of the Competition Law Review Committee submitted to Union Finance and Corporate Affairs Minister

Key recommendations include introduction of a 'Green Channel' for combination notifications to enable fast-paced regulatory approvals of mergers and acquisitions

Shri Injeti Srinivas, Secretary (Corporate Affairs), today presented the Report of the Competition Law Review Committee to the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman.

The Committee consulted various stakeholders, including industry chambers, professional institutes, Government Departments/Ministries, NGOs and experts. The Committee focused on furthering ease of doing business, encouraging start-ups and meeting the challenges of the new economy. The key recommendations of the Competition Law Review Committee are:

• Introduction of a 'Green Channel' for combination notifications to enable fast-paced regulatory approvals for vast majority of mergers and acquisitions that may have no major concerns regarding appreciable adverse effects on competition. The aim is to move towards disclosure based regime with strict consequences for not providing accurate or complete information.

• Combinations arising out of the insolvency resolution process under the Insolvency and Bankruptcy Code will also be eligible for "Green Channel" approvals.

• Introducing a dedicated bench in NCLAT for hearing appeals under the Competition Act.

• Introduction of express provisions to identify 'hub and spoke' agreements as well as agreements that do not fit within typical horizontal or vertical anti-competitive structures to cover agreements related to business structures and models synonymous with new age markets.

• Additional enforcement mechanism of 'Settlement & Commitments" in the interests of speedier resolution of cases of anti-competitive conduct.

• Enabling provisions to prescribe necessary thresholds, inter alia, deal-value threshold for merger notifications.

• CCI to issue guidelines on imposition of p........