VERTICAL RELATIONSHIP MAY BE INSIGNIFICANT

TO ANY MERGER

ROUGH DRAFT SUBMITTED IN PARTIAL FULFILMENT OF THE COURSE

TITLED CORPORATE LAW-II FOR OBTAINING THE DEGREE B.B.A., LL.B.
(HONS.) DURING THE ACADEMIC YEAR 2020-21.

SUBMITTED TO: - SUBMITTED BY: -

Ms.Nandita S. Jha
Mayank Shekhar
Roll: 1834, 8th Semester

MARCH, 2021
CHANAKYA NATIONAL LAW UNIVERSITY
NYAYA NAGAR, MITHAPUR, PATNA – 800001
METHOD OF RESEARCH

The researcher has adopted a purely doctrinal method of research. The researcher has made
extensive use of the on-line sources of the Chanakya National Law University and also other
relevant internet sources.

Sources of Data
The following secondary sources of data have been used in the project-

1. Articles
2. Books
3. Internet

Method of Writing
The method of writing followed in the course of this research paper is primarily analytical.

Research Questions
The researcher has formulated following research questions:

1. What is vertical relationship and what is the difference between vertical and
horizontal relationship?

2. What is merger?

3. What is the significance of vertical relationship between the parties in any

merger?

4. What are the laws in India that regulates the process of merger?

Aims and Objectives

 The researcher’s prime aim is to find the significance of vertical relationship between
parties in any merger.
  The researcher aims to analyse the process of merger and what factors affect the process
of merger.

Hypothesis

The researcher presumes that due to availability of strict laws like The Indian Competition
Act,2012 provisions of which are accordingly formulated to prohibit such vertical merger
which are likely to have appreciable adverse effect on competition.
Review of literature
 Regulation of Vertical Mergers- Major Takeaway for India From The European
Union.
- Article by Mrudul Dadich, Associate, J Sagar Associates.

This study summarizes the existing regulations governing the Vertical Mergers and it also
pointed out various issues that need to be resolved for the smooth functioning of CCI.

INTRODUCTION
Indian Competition Law permits the Competition Commission (CCI) to consider the nature and
extent of Vertical Integration in the market, in order to determine whether a combination will (or
would be likely to) cause an Appreciable Adverse Effect on Competition (AAEC). In this
article, we discuss the compliance and reporting requirements applicable to parties to a
combination,involved in different stages of the supply chain for a product or service, above a
certain threshold, and compare the same with the disclosures to be made in case they do not
surpass the threshold.

TENTATIVE CHAPTERISATION

1. This chapter will talk about vertical relationship and horizontal relationship and
difference between the vertical and horizontal relationship.
2. This chapter will talk about merger and its types. Like, vertical merger, horizontal
merger, conglomerate merger.
3. This chapter will talk about different laws that regulates the merger process in India that
is essential for fair competition, like the Indin Competition Act,2012.