Merger control requirements in India are currently governed by the provisions of the Companies Act 1956 (‘the Companies Act’). The Competition Act 2002, as amended by the Competition (Amendment) Act 2007 (‘the Competition Act’) provides for regulation of combinations. However, the provisions for regulation of combinations have not come into force as yet. Once the provisions relating to combinations under the Competition Act are enforced, such provisions will predominantly govern combinations.

Competition Act

The Competition Act was enacted in 2002, inter alia, with a view to preventing practices having adverse effects on competition, to promoting and sustaining competition in markets, to protecting the interests of consumers and to ensure freedom of trade carried on by other participants in markets. The Competition Act received the assent of the President of India on 13 January 2003. Even though the provisions relating to anti-competitive agreements and abuse of dominant position, which are contained in the Competition Act, have been enforced with effect from 20 May 2009 and the Competition Commission of India (CCI), which is the regulator under the Competition Act, has become functional, the provisions relating to combinations under the Competition Act have not come into force as yet. The enforcement of the Competition Act got delayed because of public interest litigation before the Supreme Court of India and the Competition Act 2007 had to undergo an amendment in the year 2007.