What is gun jumping in competition law?

What is gun jumping in competition law?

When merging parties fail to notify a merger to the competition authority, implement all or parts of the merger during mandatory waiting periods or co-ordinate their competitive behaviour before closing, this is commonly called “gun jumping”.

What is FTC second request?

In United States antitrust law, a second request is a discovery procedure by which the Federal Trade Commission and the Antitrust Division of the Justice Department investigate mergers and acquisitions which may have anticompetitive consequences.

Who can enforce EU competition law?

The Commission is the principal enforcer of the EU’s competition rules. It has the power and responsibility to investigate suspected anticompetitive conduct, to issue prohibition decisions, to impose fines, and to conclude binding agreements with companies.

What is the maximum amount of penalty that can be imposed by the CCI on a party for gun jumping?

Suspension & Penalty The CCI imposed a penalty of INR 202 crores under section 43-A of the Act. Moreover, in the absence of any mitigating factor, the CCI imposed the maximum penalty of INR 1 crore under sections 44 and 45 of the Act respectively, thereby, collectively amounting to a penalty of INR 202 crores.

What is meant by gun jumping?

Gun jumping refers to unlawful activities by a company awaiting regulatory approval for a transaction. The term arises in the context of (1) securities regulation and (2) anti-trust regulation.

What is HSR second request?

An HSR Second Request is part of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) that requires parties to certain mergers or acquisitions to notify the Federal Trade Commission (FTC) and/or the Department of Justice (DOJ) of their intentions.

What is HSR waiting period?

Parties to a transaction subject to the reporting requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) must adhere to a statutory waiting period (30 days for most transactions) after filing their Notification and Report Forms before closing on the deal.

Does EU competition law apply in the UK?

Since Brexit, under the terms of the UK-EU trade agreements, EU competition law is no longer enforced in the UK, and the UK and EU now operate completely separate competition regimes.

How much can businesses be fined for breaking competition law?

What happens if the law is broken? Businesses that are found to have breached competition law can be fined up to 10 per cent of their annual worldwide turnover and ordered to change their behaviour.

What means gun jumping?

Is gun jumping illegal?

Gun-jumping, in financial markets, is acting on information that is not available to all potential investors. It is illegal if it entails exploiting insider information for financial gain. Stock analysis techniques like the “scuttlebutt method” may exploit loose talk but not hard facts.

What is a clean team agreement?

A clean team agreement establishes procedures that both parties must follow when sharing sensitive information. This allows the parties to plan for integration without the fear that competitive information or trade secrets will be revealed in the event the merger does not go through.

What is HSR early termination?

A request for early termination can be made directly on the HSR Notification and Report Form, and decisions to grant early termination are made public on the FTC’s website. In February 2021, the early termination process was “temporarily” suspended due to a backlog of reported transactions and the impact of COVID-19.