Technology Sector Mergers And Acquisitions Under Indian Anti-Trust Laws

Nuha Razak, School of Legal Studies, CUSAT

ABSTRACT

One of the main catalysts for our economy’s progress is technology. And this technological transformation of our economy pushes our companies to improve and increase their technological capabilities. To meet their technological requirements, the companies often resort to mergers and acquisitions. The purpose of this study is to examine the approach of the Indian anti-trust laws towards mergers and acquisitions in the technology sector.

INTRODUCTION

The profound impact of technology on our economies has played a significant role in improving competitiveness, productivity and, in general, overall performance across companies.1Many companies develop new business models, adapt to technological changes, integrate innovative technologies into their production process and cultivate their inherent potential technological capabilities2. However, the Rapid pace of technological changes, shortened product life cycles, scarcity of resources, and increasingly intensive competition have caused significant challenges to the companies. As a result, many companies are forced to source and develop their technology and innovation capability quickly and externally.3 However, this process can be uncertain, and time-consuming, especially considering that not all companies possess the technical know-how to develop innovative technologies due to their limited knowledge and skills. furthermore, the formidable competition from other technology firms aggravates the challenge of survival in today’s fast-paced economy. Hence the companies resort to mergers and acquisitions as a strategic measure to obtain new technological knowledge/capabilities and to mitigate competition in the market.