Competition Commission of India (“CCI”) issued a Press Release inviting comments on the proposal to amend Form I of Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (“CCI Regulations”) to allow parties flexibility in determining non-compete restrictions, while also reducing the information burden on them.
Prior to the said amendment, notifying parties for mergers and acquisitions were required to inform CCI of the non-compete restrictions in the combinations. CCI had also issued a guidance that stated that 3 years of non-compete obligation is usually justified in case of transfer of goodwill and know-how and two years in case of transfer of goodwill alone. It further provided that the scope of non-compete shall be restricted to the business sold and the territory where it was conducted.
CCI has proposed to delete Form - I of Schedule II of the CCI Regulations that requires parties to provide information regarding non-compete restrictions agreed between the parties to combination and justification for the same. However, they will still be required to be competition compliant.
This post has been contributed by Ms. Vaneesa Agarwal and Ms. Sanyukta Srivastav.
[Disclaimer: This article is for academic purpose and is solely to provide readers with general information regarding developments in Indian law. For specific queries, please write to us at firstname.lastname@example.org.]