The Competition Commission of India (CCI) today asked companies to look into the possibility of adding anti-trust immunity clause while firming up mergers and acquisition (M&A) deals to ward off procedural delays and legal tangles.
CCI Chairman Dhanendra Kumar also urged companies to approach the regulator for pre-merger consultations as the M&A laws are quite liberal and accommodating.
"The CCI's role is to facilitate the industry so that national economy can prosper. We will prioritise cases which impact a large number of consumers," he said while releasing the study titled 'Competition Law in India – An Overview' by Assocham.
Kumar said industry associations must be careful in what they say publicly when it comes to issues impacting many people adversely. He stressed that industry bodies are quite influential and have the ability to shape public perception negatively at large, even if they do not intend to.
Kumar further said the Commission has so far received 171 cases under Sections 3 and 4 of the Competition Act, of which 68 have been decided.
He said the punishment existing for anti-competitive practices are not so tough at present but the enforcement in future will be stiffer. He also assured industry that confidentiality of data will be maintained at all costs while scrutinising M&A cases.
"We will be watchful to protect consumer rights. We will also match the needs and aspirations of the Indian industry," he said while referring to the recent sharp increase in the number of cases the CCI had to deal with.
From June 1, all high-voltage M&A proposals would require the CCI's go ahead as specified in the recently notified sections 5 and 6 of the Competition Act.
