It has been observed that prescribing a general set of standards for assessment of non-compete restrictions may not be appropriate in modern business environments. While it may be possible to conduct a detailed examination on case by case basis, the same may, however, not be feasible considering the timelines followed in combination cases.
The CCI, therefore, proposes to omit paragraph 5.7 of Form I in the Combination Regulations 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, 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/ or 4 of the Act.
AA copy of the draft amendment to the Combination Regulations is available on the website of the CCI (www.cci.gov.in ). Comments are invited from the public and may be emailed to email@example.com by June 15, 2020.