This is a rundown of last week’s Antitrust updates:
Government mulling amendment to Competition Bill 2020 to give CCI wider powers over big tech companies
In order to ensure that digital market remains open to new entrants and existence of meritorious competition between digital platforms, the Central Government is proposing to bring changes to the pending Competition Bill 2020. They aim to enhance the scope of the CCI over digital markets, with wider powers to be conferred on the CCI and legal tests beyond what has been applied in traditional competition models to be adopted. A ‘deal value’ threshold may also be adopted to tackle high value targets in the digital sector that do not generate significant turnover or have a sufficient asset base but have high valuations due to their large customer base and data.
CCI approves Hitachi Construction Machinery acquisition by HCJI Holdings & others
The Competition Commission of India (CCI) has approved acquisition of shareholding in Hitachi Construction Machinery by HCJI Holdings G.K., Citrus Investments, HCJ Holdings 2 G.K and few other investors. 26% of the shareholding is proposed to be acquired on a fully diluted basis by investors including Citrus Investments LLC, a wholly owned subsidiary of ITOCHU Corporation, HCJ Holdings 2 G.K., Japan Industrial – GP, Manalsu, Primrose GP, Shepherds Hill Partners III Ltd., and Sonora Partners III Ltd. through HCJI Holdings G.K.
CCI reviewing dealings between e-commerce platforms and preferred sellers
The investigation arm of the Competition Commission of India is in the process of reviewing documents that suggest financial dealings between e-commerce platforms (Amazon and Flipkart), and their preferred online vendors. These documents were seized in the raids carried out by the CCI at the premises of multiple vendors of these platforms upon receiving alleged violations of competition laws.
Authored by Rohan Jacob (Associate) and Snigdha Saraff (Intern).
