M&As: CCI's remedies aimed at 'preserving competition'

NEW DELHI: Seeking to curb unfair business practices, CCI Chairman Devender K Sikri has said it proposes remedies in combinations to preserve "effective competition" and associated advantages such as consumer choice.

Competition Commission of India (CCI) keeps a tab on unfair trade practices across sectors.

Combinations or mergers and acquisitions (M&As) between entities beyond a certain threshold are required to get CCI nod.

Sikri, who took over as Chairman in January, has said remedies are suggested depending on the nature of combination and its impact in the relevant market.

In less than two years, the watchdog has put three major deals for public scrutiny following anti-competitive concerns.

"Remedies are designed keeping in view the specific competitive harm arising from the combination. The aim is to preserve effective competition with its associated advantage of lower price, better quality, consumer choice and innovation etc without forgoing to the extent possible, the benefits of the combination," Sikri has written in CCI's latest quarterly newsletter.

The newsletter is for the period from October-December 2015.

According to Sikri, the commission may choose a behavioural or structural remedy or even a hybrid remedy, depending on the nature of the combination and its impact on competition in the relevant market.

Noting that the regulator has completed more than four years of effective and timely review of combination cases, he also said the experience has been that most "combinations do not raise competition concerns".

In December, CCI had sought public scrutiny of the Rs 500-crore PVR-DT Cinemas deal, after finding that prima-facie the deal was likely to adversely impact competition.

Back in 2014, the watchdog had sought comments from public on two mega transactions -- the USD 4 billion Sun Pharma-Ranbaxy combination and Holcim-Lafarge deal.

In both instances, the regulator had called for divestment of certain assets by the entities involved to address anti-competition concerns.