A CRITICAL STUDY ON CROSS-BORDER COMBINATION IN BALANCING ECONOMIC GROWTH AND COMPETITION IN INDIA

AUTHOR – BAVADHARANI U, LL.M (STUDENT), SCHOOL OF EXCELLENCE IN LAW, TNDALU

BEST CITATION – BAVADHARANI U, A CRITICAL STUDY ON CROSS-BORDER COMBINATION IN BALANCING ECONOMIC GROWTH AND COMPETITION IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (9) OF 2026, PG. 88-102, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I910

ABSTRACT

Combination includes Merger, Acquisition and Amalgamation. And cross-border Combination refers to Merger, Acquisition and Amalgamation in and out of the territory of India by a foreign entity or an Indian Company acquiring company outside the territory of India. After Globalisation in the year of 1991, Cross Border Combination plays a crucial role in economic development of the Country. It encourages Foreign Direct Investment, transfer of Technology, innovation, transfer of resources and creation of employment opportunities and in other hand it had negative impact in host country competitors. When a dominant player in the relevant market mergers with the foreign entity in it possible to AAEC in competition by price fixing, restricting new competitors to enter the market, abusing its dominant position, market allocation and even entering into Anti-competative agreement. It is very important for developing country like India to have proper regulatory mechanism and it do have many authorities. For a merger to establish in India, if it exceeds certain threshold limit it is important to get approved from Reserve Bank of India, National Company Law Tribunal and Competition Commission of India. This study critically examines the impact of cross-border combinations on India’s economic growth and its competition framework. Simultaneously, it assesses the regulatory challenges faced by Indian authorities, especially the Competition Commission of India, in scrutinizing and approving such combinations to ensure they do not hinder competitive market dynamics.

The study further analyses the effectiveness of current legal and policy frameworks i.e. Effects Doctrine in India governing cross-border combinations under the Competition Act, 2002. It evaluates whether these frameworks are adequate to balance economic growth aspirations with the need to maintain a level competition field in the market.

KEYWORDS: Merger, Effects Doctrine, economy, Competition, Cross Border Combination