CCI's Warning Bell For Green Channel Route Seekers

Introduction

In a recent development, the Competition Commission of India (CCI, or, the Commission) has sent out a stern warning to the parties opting for green channel route. This development comes as a timely response to the rising concerns surrounding fair competition and market integrity within the landscape of Indian businesses.

The Competition Law Review Committee Report, 2019, had recommended a type of voluntary mechanism known as Green Channel Route (GCR) for combinations that are unlikely to result in any appreciable adverse effect on competition in the relevant market. Pursuant to this Report, Regulation 5A was added to the Combination Regulations, 2011 by the Competition Commission of India (Procedure regarding the Transaction of Business relating to Combinations) Amendment Regulations, 2019 (Combination Regulations).