CCI rejects complaint against PVR-INOX deal
The Competition Commission of India (CCI) on Tuesday rejected a complaint against the proposed merger of multiplex chains PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe. The watchdog''s order has come on a complaint filed against the proposed merger that would create the country''s largest multiplex chain with a network of more than 1,500 screens. On March 27, PVR and INOX Leisure announced the merger. However, the entities were not required to seek CCI approval for the deal as it was below the regulator''s threshold levels. Under the competition law, deals beyond certain thresholds require clearance from the regulator. In a seven-page order, the regulator said it was of the view that apprehension of likelihood of AAEC (Appreciable Adverse Effect on Competition) by an entity which is yet to take form cannot be a subject matter of inquiry|investigation under Section 3 or 4 of the Competition Act. Section 3 pertains to anti-competitive agreements and Section 4 relates to abuse of dominant position.
CCI rejects complaint against PVR-INOX deal
The Competition Commission of India (CCI) on Tuesday rejected a complaint against the proposed merger of multiplex chains PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe. The watchdog''s order has come on a complaint filed against the proposed merger that would create the country''s largest multiplex chain with a network of more than 1,500 screens. On March 27, PVR and INOX Leisure announced the merger. However, the entities were not required to seek CCI approval for the deal as it was below the regulator''s threshold levels. Under the competition law, deals beyond certain thresholds require clearance from the regulator. In a seven-page order, the regulator said it was of the view that apprehension of likelihood of AAEC (Appreciable Adverse Effect on Competition) by an entity which is yet to take form cannot be a subject matter of inquiry|investigation under Section 3 or 4 of the Competition Act. Section 3 pertains to anti-competitive agreements and Section 4 relates to abuse of dominant position.