Due diligence on competition law aspects is an examination of the actual operations and practices of an enterprise and effectiveness of the company's competition law compliance policy and training program. Discuss.

Due Diligence under Competition Law It is an examination of the actual operations and practices of an enterprise to determine the extent of its compliance with the competition law and to identify potential risks and liabilities and assess the adherence to and effectiveness of the company's competition law compliance policy and training program. Primary components of Competition Law due diligence are: An examination of selected company documents. Interviews with selected company personnel. Identify specific business activities that potentially could create antitrust exposure for the company. The results of the due diligence may suggest an enterprise to have an effective competition law compliance programme. The results of the due diligence may result in variation of deal value, withdrawal of deal and also make suggestions to structure a compliance program. How to go about the process of due diligence of competition law. Due diligence of competition law may be made under the following heads: Due diligence of various agreements (both existing and proposed) Due diligence on dominance and its likely abuse if any, (existing) Due diligence on combinations (i.e. effect of proposed Mergers & Acquisition). Due Diligence of various agreements includes: Agreements relating to production, supply and distribution of goods or services Agreement if any with competitor relating to production, marketing or bidding, price etc. Agreements with customers and distributors. Purchase agreements. Non-compete covenants. Technology transfer/technical know-how agreements. Concession agreements. Due diligence on abuse of dominance, if any includes: Examination as to the existence of dominance. Examination of relevant market, whether product or geographical Areas. Cases of abuse if any Due diligence on regulation of combinations: Nature of combination. Acquisition of share, voting rights, assets or control or merger/amalgamation etc. Examination of total value of Assets or Turnover and the valuation methodology. Status of merger notification to be filed with CCI. Status of dominance after merge and also state how it is performed.