Lok Sabha Passes Competition (Amendment) Bill, 2022

The Lok Sabha on Wednesday passed the Competition (Amendment) Bill, 2022.

The Bill was introduced in August of the previous year, during the Monsoon Session of the Parliament and it was referred to the Parliamentary Standing Committee on Finance headed by Jayant Sinha for examination.

The Bill seeks to amend the Competition Act of 2002 to regulate mergers and acquisitions based on the value of transactions.

It includes several key amendments to the existing framework, such as an expansion of the scope of entities that can be adjudged to be a part of anti-competitive agreements, the introduction of a deal value threshold for mergers and combinations, and the modification of ‘turnover’ to mean global turnover, among others. 

The Bill proposes to reduce the timeline for the CCI to pass an order on such transactions from 210 days to 150 days. 

Further, in an effort to reduce litigation and allow easier resolution of disputes, the bill provides a framework for settlement and commitment to faster resolution of investigations of anti-competitive agreements and abuse of dominant position. The Bill also decriminalises certain offences under the Act by changing the nature of punishment from the imposition of fine to civil penalties. These offences include failure to comply with orders of the CCI and directions of the Director General related to anti-competitive agreements and abuse of dominant position.

Click Here To Read/Download The Bill