Mitali Tikyani, I.L.S. Law College, Pune
Pratik Duseja, I.L.S. Law College, Pune
Brief overview:
The paramount settled by the competition act has made significant effective changes to embrace the old competition regime. Different ideas, including Deal Value Threshold, settlement and commitment, among others, were introduced in the most recent amendment. The government has notified that provisions of the Competition (Amendment) Act, 2023 would go into effect on May 18, 2023. The goal of the amendment was to empower India's Competition Commission with the authority to outlaw practices that hurts consumer interests and competition.
Due to the market's dynamic transformations brought on by technological advancements, digital competition act, the adjustments were needed to sustain and foster market competitiveness.
Modifications in Deal Value threshold:
The 2023 Amendment adds a new threshold to the existing jurisdictional thresholds for merger and acquisition notice. If the target has "substantial business operations" in India, transactions that surpass a global deal value of Rs. 2,000 crore ($244 million) would now need CCI approval. The amendment aims to make lethal acquisitions subject to CCI assessment. Killer acquisitions are those made by established companies in narrow markets to drive out potential rivals with comparatively weak market presence. Given the scale of the target, such acquisitions often do not prompt a merger review but need careful thought. With this modification, the competition regulator would be required to examine high-value transactions, which are frequently observed in high-tech startups and cutting-edge pharmaceutical sectors.
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