Describe various heads of Due Diligence of Competition Law.
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2022
Describe various heads of Due Diligence of Competition Law.
Answer & Explanation:
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) 1. 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 2. 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. 3. Due diligence on regulation of combinations: The following aspects are to be analysed during due diligence process: 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 merger.
Topics: Due Diligence
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