The Competition Act is set for a major revamp with the government set up a panel to suggest ways of making the anti-trust law in sync with the changing business environment and to adopt global best practices.
The 10-member panel chaired by Injeti Srinivas, secretary in the corporate affairs ministry, will pay special attention to merger guidelines and cross-border competition issues, said the corporate affairs ministry.
The review of the competition law comes at a time the Indian economy is witnessing a series of acquisitions as part of a bankruptcy court-monitored resolution of stressed assets.
Need for review of the act:
During the past nine years, the size of the Indian Economy has grown immensely and India is today amongst the top five Economies in the World and poised to forge ahead further. In this context, it is essential that 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 Competition Act:
The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.