Evaluating the Efficacy of Remedial Measures under the Competition Act: A Critical Study

The Competition Commission of India (CCI) plays a crucial role in evaluating and regulating mergers, acquisitions, and amalgamations that may have an adverse effect on competition. The CCI has reviewed over 1,000 filings since 2011, requiring modifications in approximately 40 cases to mitigate competition concerns. These modifications range from structural remedies like divestitures to behavioral commitments addressing issues such as access, discriminatory practices, and information sharing. The CCI follows distinct procedures during Phase I and Phase II reviews. In Phase I, parties propose voluntary modifications, which the CCI assesses. There is also an intermediary period for modifications before Phase II. During Phase II, the CCI can suggest and negotiate modifications, which parties must implement within a specified timeframe to secure approval. The CCI adopts a flexible, case-by-case approach when crafting remedies tailored to address specific competition issues. Structural remedies like divestitures are preferred for significant horizontal overlaps, while behavioral remedies tackle vertical concerns. The CCI engages extensively with parties to ensure effective mitigation of competitive harm. Aligning with global best practices, the CCI collaborates with international regulators on cross-border mergers. However, it maintains a strong focus on India-specific impacts. Parties are advised to propose timely, proportionate remedies, ideally in Phase I, and maintain contingency plans.