Competition Commission of India, CCI has proposed changes to combination regulations to do away with the requirement for disclosing certain non-compete restrictions while seeking the watchdog's approval.
 
Combinations — generally mergers and acquisitions — beyond a certain threshold need clearance from the regulator under the Competition Act.

The CCI plans to omit part of the combination regulation that seeks information regarding non-compete restrictions agreed between the parties to combination and justification for the same.  This would allow the parties flexibility in determining non-compete restrictions, while also reducing the information burden on them.

However, CCI yesterday said in a release that the parties will be responsible for ensuring that their non-compete arrangements are competition compliant. Competition concerns, if any, that may arise from non-compete restrictions can be looked into under Sections 3 and 4 of the Act, it added.  

The regulator has been looking at non-compete restrictions stipulated in mergers and acquisitions while reviewing combinations. Notifying parties are required to furnish information on non-compete restrictions.

Stakeholders can give their comments on the draft amendment to the combination regulations by 15 of next month.