CCI Issues Guidance note on “Non-compete” clause: An Overview* Introduction “Non-compete” obligations are frequently incorporated in M & A transactions to facilitate the effective implementation of a proposed combination. Non-compete obligations enable the Acquirer to secure complete benefit from the transferred assets (including tangible, and intangible assets such as know-how and goodwill). In the case of a joint venture, non-compete obligations prevent the parent companies from competing to the detriment of the business interests of the joint venture. However, non-compete obligations can also raise potential anti-trust concerns, it being covenants that ultimately restrict or impede fair competition in the market. Mature competition law regimes usually permit the imposition of a
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The Indian Competition Authority issues Guidance note on “non-compete” clauses
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