Competition Act to Be Revamped
Secretary of the Ministry of Corporate Affairs, Injeti Srinivas, will chair a panel of 10 members to review the Competition Act, and its subsequent amendments, with the specific view of addressing areas such as the issues arising from cross-border competition and guidelines on mergers. In essence, the panel will attempt to bring the tenets of this act in line with current global norms and best practices, while also helping to keep it relevant in a changing business environment.
Also, as indicated in an official statement regarding the prominence that India has gained as an economic power in the world, “In this context, it is essential that the competition law is strengthened, and re-calibrated to promote best practices, which result in the citizens of this country achieving their aspirations and value for money.” The panel will submit its report in three months’ time.
One of the calls has been for the Competition Act to be better aligned with the Insolvency and Bankruptcy Code of 2016 as the country has seen a series of bankrupt businesses be moved to acquisition as part of the procedure related to court-monitored resolution. The Competition Act has primarily dealt with matters regarding mergers of functioning, or non-defunct entities, cartelisation, predatory pricing, bid rigging and promoting fair trade practices overall. Yet, as the complexity of the business environment continues to increase, the need to provide a more proactive framework that encourages businesses to operate within the country becomes something of a necessity that arises from the nature and magnitude of growth of the economy in the last couple of decades.