At midnight on 5 March 2011, the Indian government took the final step towards implementing a new competition law regime by bringing into force those sections of the regime that regulate combinations. Combinations are transactions that involve the acquisition of shares, voting rights, assets or control.
The Indian government has formally notified, with effect from 1 June 2011, Sections 5 and 6 (regulation of combinations), Section 20 (inquiry into combinations), Section 29 (procedure for investigating combinations), Section 30 (procedure in cases of notice given by any person or enterprise to the Commission), Section 31 (Commission’s authority to issue Orders on combinations) of the Competition Act 2002, as amended by the Competition (Amendment) Act 2007, (the Act). This means that transactions meeting the thresholds notified in the Act must be pre-notified to the Competition Commission of India for approval prior to closing.
The Act was partially brought into effect on 20 May 2009 when provisions dealing with anti-competitive agreements (Section 3) and abuse of dominance (Section 4) were brought into force. The notification of regulation of combinations with the effective date of 1 June 2011, brings into force the entire Act.