CCI can vet pharma M&As: Attorney General

The Attorney General (AG) has settled the turf war between Department of Industrial Policy and Promotion (DIPP) and the Planning Commission by ruling that the Competition Commission of India (CCI) can vet all pharma mergers and acquisitions (M&As).

According to the AG, "anything that constitutes public interest is within the CCI domain." Ministry of corporate affairs says they have forwarded the AG's opinion on CCI mandate to the PMO and the CCI, reports CNBC-TV18's Malvika Jain. The PMO had sought the opinion of the AG sometime in June this year because the DIPP and the Health Ministry felt that the FIBP should continue to vet all pharma M&As. The Planning Commission however felt that this mandate should be given to the CCI. The Attorney General has agreed to what the Planning Commission has been maintaining and suggesting all along. The Attorney General feels, that the CCI is empowered to vet all pharma M&As. The Preamble of the Competition Act empowers the CCI to protect consumer interest and public interest as a part of consumer interest. So now, the final decision in this matter will be taken by the PMO, but in the meantime, the ministry of corporate affairs is gearing up to introduce the Competition Act Amendment Bill in the winter session. This is going to enable the CCI to vet all pharma M&As. So, if the PMO decides to give this mandate to the CCI it will be legally enabled to take this mandate forward.