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CSEET · Economic and Business Environment · Key Government Institutions

Regarding the regulation of combinations by the Competition Commission of India, which statement is correct under the current framework?

Combinations that cross the prescribed asset or turnover thresholds must be notified to the CCI and cannot be completed without approval. The CCI may disallow any combination likely to cause an appreciable adverse effect on competition; small deals below thresholds need no approval.

  1. ACombinations crossing the prescribed asset or turnover thresholds require notice to and approval from the CCI, and one that causes an appreciable adverse effect on competition can be disallowedCorrect
  2. BAll mergers of any size require prior CCI approval
  3. CThe CCI regulates combinations only after they have been completed, never before
  4. DCombinations are outside the CCI's authority and handled by SEBI alone

Explanation

The Act regulates combinations (acquisitions, mergers, amalgamations) that cross notified asset or turnover thresholds; they must be notified and cannot take effect until approved or the statutory period lapses. The CCI may block those likely to cause appreciable adverse effect on competition. Small transactions below thresholds need no approval, and the review is prior, not merely after completion.

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