Regulations of Combinations by Competition Law in India

Abstract

Firms seek to grow by acquiring others with objectives such as improving efficiency and achieving economies of scale. Sometimes an enterprise facing closure ('failing firm') could avoid that fate by merging with a more efficient firm. The Indian Competition Act, 2002, also has provisions for regulating mergers – these are known as 'combination's' which include mergers and amalgamations, acquisition and acquisition of control. However, the merger regime is liberal (due to high threshold levels). Sections 5, 6, 20, 30 and 31 of the Indian Competition Act, 2002 are relevant section with regard to combination's. The Competition Act does not seek to eliminate combination's and only aims to eliminate their harmful effects.