From Monopoly To Market Power: CCI's Oversight Of Mergers And Acquisitions
- IJLLR Journal
- May 1
- 1 min read
Raveen Kumar R, Sathyabama Institute of Science and Technology
Vinothini S, Sathyabama Institute of Science and Technology
Keerthana R, Sathyabama Institute of Science and Technology
ABSTRACT
In a rapidly growing economy, where individuals put in a lot of monetary value in the market, the enterprises and industries in the market tend to capture the dominant position in order to attract the major consumer base. However, in order to survive and cope in such a competitive scenario, the dominant players in the market consolidate their assets, which in legal terms is referred to as mergers and acquisitions. While this method helps promote their business and provides them (businesses) a quite enriching opportunity to upscale themselves. But such moves could possibly affect the fairness and could possibly exploit the consumer base in the pertaining area of business. To restrict, limit, and monitor such uncompetitive trade practices, the legislative body of India has set up the Competition Commission of India (“CCI”) under the Competition Act 2002. It plays a major role by preventing competitions that could cause appreciable adverse effects on competition (AAEC) in the market. This also aims to follow the structure laid out by the Companies Act 2013 in restructuring such entities that were registered under its provisions. This research will critically examine and analyze the importance of the Competition Commission in maintaining mergers and acquisitions, which provides safety to the consumer base from being exploited by unfair trade practices and the possible abuse of dominant positions in the economy.
