Competition Act amended to expand regulatory scope and update legal references

It also updates references to the Companies Act from 1956 to 2013.

Who it concerns: Enterprises, associations of enterprises, persons, consumers, consumer associations, trade associations, the Central Government, State Governments, and statutory authorities involved in economic activities, mergers, acquisitions, or agreements affecting trade.

What the bill does

• Updates references to the Companies Act, 1956 to the Companies Act, 2013 throughout the Act.
• Defines 'commitment' and 'settlement' in relation to new sections 48B and 48A.
• Expands the definition of 'party' to include consumers, associations, and governments.
• Presumes an enterprise is part of an agreement if it actively participates in furthering it, even if not engaged in identical trade.
• Excludes agreements between an enterprise and an end consumer from certain restrictions.
• Adds a threshold for combinations where the transaction value exceeds two thousand crore rupees, provided the enterprise has substantial business operations in India.
• Defines 'control', 'group', 'turnover', and 'value of transaction' for the purpose of determining combinations.
• Reduces the time limit for the Commission to dispose of combination notices from 210 days to 150 days, with a possible 30-day extension for defects.
• Allows for a simplified notice process for combinations meeting prescribed criteria, deemed approved upon filing and acknowledgement.

Also in the document

• The Bill is an amendment to the existing Competition Act, 2002.
• It introduces specific monetary thresholds (two thousand crore rupees) for transaction values in combinations.
• It modifies the timeline for regulatory approval of combinations from 210 days to 150 days.