Business has been up in arms on the merger provisions of the new Competition Act, 2002 (amended in 2007) not just now, but ever since it was being debated. Now, it is not only the long period of a mandatory review, but how they will be applied, and by persons, who may just be under skilled and over zealous.
The objectives of the new law are to promote economic development of the country and to do so by dealing with market failures, advancing consumer interest and ensuring the freedom of trade for other participants in markets in India.
Other than cartels and abuse of dominance, one cannot ignore the fact that mergers and acquisitions (M&As) also need to be regulated so that they do not end up in a potentially abusive position. That’s the reason the law has provided for approval of mergers over certain high thresholds prior to their consummation.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment