CCI's Green Channel of Competition

GURGAON, India - Sept. 2, 2021 - PRLog -- n 2019, the Competition Commission of India (CCI) amended the Combination Regulations 2011 in order facilitate expedited process of approval for mergers and acquisitions. The 'Green Channel' is an automated and transparent system for gaining approval for certain type and combination of mergers and acquisition.

CCI is a government authority established in 2009 under the Competition Act, 2002 to ensure and sustain healthy competition. CCI has the authority to halt and regulate any market activity that may have adverse effect on competition. Therefore, certain combinations of mergers and acquisitions that may have an adverse effect on the market competition require prior approval from the authority. The green channel is an initiative to ease and speed-up the process of seeking this approval from the authority. As of August 2019, the CCI had cleared 666 combinations of mergers and acquisitions in the market.

Along with no possibility of any adverse effect on competition the CCI also notified new eligibility criteria for the combinations to apply through the green channel route, as following:

i.          No horizontal overlaps exist [i.e. there is no production of identical/similar products/services];

ii.        No existing or potential vertical relationships [i.e. products/services should not belong to different stage or level of production]; and

iii.      No complementary business activities; exist between the combining or related parties.

In simpler terms the parties/companies that are looking for approval should not have any overlap or connection in the relevant market.

Read full press release here: https://www.kpalegal.com/ccis-green-channel-of-competition/