Gun Jumping under the Indian Competition Law: An Analysis with Global Jurisdictions

Competition Authorities tend to regard control over mergers and acquisitions by large and powerful companies as one of their most critical concerns. Not only are they concerned with their Conduct but also the possible Anti-Competitive effect on the relevant market. Globally, an Ex-Ante screening of mergers is common to all Anti-Trust Jurisdictions. In India, the Competition Act, 2002 has comprehensive legislation on Combination Regulations. However, it has become an unruly practice for Parties proposing to enter into Combination to consummate the transaction even before the approval of the Anti-Trust Watchdog is received, thereby reducing the legislative Intent behind the Combination Regulations to a nullity. The term ‘Gun Jumping’ does not find a mention in the Indian Anti-Trust Jurisprudence; however, it traces its roots to the global Anti-Trust Jurisdictions of the US and UK. In India, gun-jumping has primarily evolved through precedents. However, considering the increased amount of Merger and Acquisition activity in the Economy, a need is felt to bring in more clarity on the concept of Gun Jumping. The accompanying Research Paper aims to explore the concept of ‘Gun Jumping’ along with a comparative Analysis with Global Anti-Trust Jurisdictions.