Competition Commission hikes fees payable for proposing combinations

Any person or enterprise, who or which proposes to enter into a combination as described in the Competition Act (Section 5), is required by law (Section 6(2) of the Competition Act) to give notice to the Competition Commission of India in the prescribed form [ordinarily Form I specified in Schedule II of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011] and requisite fee which earlier was Rs 15,00,000/- only but now the Competition Commission of India, in exercise of the powers conferred by section 64 of the Competition Act, 2002 has amended [by introducing the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Second Amendment Regulations, 2019 vide notification F. No. CCI/CD/Amend/Comb. Regl./2019(2) on 30th October 2019] the said regulations and increased the requisite fee from Rs 15,00,000/- only to Rs 20,00,000/- only.

Where

  • the parties to the combination are engaged in production, supply, distribution, storage, sale or trade of similar or identical or substitutable goods or provision of similar or identical or substitutable services and the combined market share of the parties to the combination after such combination is more than fifteen percent (15%) in the relevant market,

or

  • the parties to the combination are engaged at different stages or levels of the production chain in different markets, in respect of production, supply, distribution, storage, sale or trade in goods or provision of services, and their individual or combined market share is more than twenty five percent (25%) in the relevant market.

The parties to the combination may, at their option, give notice in Form II, as specified in schedule II of  Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011. However, in cases where the parties to the combination have filed notice in Form I and the Commission requires information in Form II to form its prima facie opinion whether the combination is likely to cause or has caused appreciable adverse effect on competition within the relevant market, the Commission directs the parties to the combination to file notice in Form II as specified in schedule II along with prescribed fees, but in such cases the fees already paid along with Form I is adjusted while paying the fees prescribed with Form II. The fees which is required to be paid with Form II was Rs. 50,00,000/- only earlier however, vide the amendment, it has been now increased to Rs. 65,00,000/- only.

Copy of notification: F. No. CCI:CD:Amend:Comb. Regl.:2019(2)

-Adv. Tushar Kaushik

Leave a Reply

Your email address will not be published. Required fields are marked *