Parties seeking merger clearance can sigh with relief, as India has done away with the disclosure requirements governing non-compete clauses.
In November, the Competition Commission of India (CCI) announced that parties to a combination (merger/ acquisition) are no longer required to give separate details regarding non-compete clauses. This ensures flexibility for both the competition authority and merging parties. It is a win-win situation, as the merger review process will not be held up by these clauses, giving the industry the flexibility to operate commercially.
The CCI can review these clauses subsequently under sections 3 and 4 of the Competition Act, governing cartel and abuse of dominance conduct respectively.
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