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Standing Committee adopts draft report on Competition Bill

The Bill is likely to be taken up for consideration in the Budget Session of Parliament.

Standing Committee adopts draft report on Competition Bill
It is also learnt to have recommended that the Competition Commission of India should have at least one judicial member.

The Parliamentary Standing Committee on Finance is learnt to have adopted the draft report on the Competition (Amendment) Bill, 2022 on Thursday and it is expected to be tabled in Parliament in the coming days.

The Standing Committee, chaired by Jayant Sinha, is learnt to have accepted the Rs 2,000 crore threshold for merger and acquisitions, beyond which they will require approval from the Competition Commission of India. The exact nuances of the recommendations are not clear.

It is also learnt to have recommended that the Competition Commission of India should have at least one judicial member. In its meeting on Thursday, the panel was also briefed by the representatives of Department of Legal Affairs (Ministry of Law and Justice) on the provisions of the Bill.

The Competition (Amendment) Bill is being closely tracked as it will have far reaching implications on high value mergers and acquisitions, especially in the technology and digital space.

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Amongst its various provisions, the Bill seeks to make it mandatory for high value mergers and acquisitions to be notified to the CCI if the deal value is over Rs 2,000 crore and it has significance presence in India.

Another amendment seeks to lower the time limit for approval of combinations to 150 days from the current 210 days. The Bill also seeks to broaden the scope of anti-competitive agreements and inclusion of a party facilitating an anti-competitive horizontal agreement under such agreements;

The Bill is likely to be taken up for consideration in the Budget Session of Parliament.

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First published on: 09-12-2022 at 06:10:00 am