Competition law is all pervasive – it could impact right from execution of an ostensibly simple distribution agreement or get triggered when a multi-billion dollar cross-border acquisition occurs which, often times, may raise tremendous monopoly issues necessitating notification of such combination(s). In a world where businesses are increasingly looking across geographical boundaries, it has become imperative to ensure they adopt non-offensive competitive practices aligned with the business objectives and market strategies of corporations. In India, competition is a complex and constantly evolving law. The Competition Act repealed the Monopolies and Restrictive Trade Practices Law in September 2009. With the constant amendments in the relatively nascent law and increased intervention by the Competition Commission of India despite the short existence of the legislation, PSA has carved Competition Law practice from the realm of the general commercial laws practice so as to create a team that can deliver specialized legal advice in a highly evolving area which is becoming indispensable to companies.
PSA lawyers are competent to assist clients in the entire field of competition law, be it complex transactions attracting merger control provisions, assistance in contractual drafting with an endeavor to prevent behavior that could be construed to be anti-competitive, assisting and advising clients on ensuring that their risks are minimized when business teams engage in conduct or close on contracts that could have an adverse effect on competition, the establishment and operation of distribution systems, litigation, cartel investigations or assessment of abuse of dominant position, analysis of licensing, franchising and use of intellectual property rights, and, of course, filings and general advisory work. Our team has represented companies in defending and promoting their interests in investigations by the CCI for alleged contraventions. Preempting competition concerns is always preferable as opposed to having them arise later and become thorny, complicated issues. We have advised clients on complex issues like pricing, resale price mechanism, territorial restrictions, marketing, and in generally identifying anti-competitive elements of their existing business practices or policies and on how to structure transactions and contracts in line with competition law requirements. Working closely with some of our other teams, the goal of the lawyers is always to identify legal solutions that best meet the clients’ commercial objectives.
We have advised:
• A European listed company on competition issues in the context of a proposed US acquisition leading to equity stake in Indian companies;
• US clients on regulatory issues to ensure that the contracts do not qualify as unfair or restrictive trade practices;
• Global clients including investors and businesses in competition issues involved in development, supply, marketing, consulting and other agreements and arrangements;
• Different domestic clients on issues arising pursuant to price revisions and drafting pricing policy for products to ensure absence of predatory pricing;
• Various domestic and international clients on non-compete provisions and agreements and their enforceability;
• US corporations on anti-competitive behavior in franchising and distribution contracts;
• Indian subsidiaries of foreign companies in investigations launched by the CCI;
• French corporations in acquisitions being construed as possible combinations and the implications thereof in terms of the deal structuring, the notification requirements, the impact on consummation of the transactions;
• US corporations on analysis of pricing provisions and compliance to avoid investigations, fines, risks and penalties
