The Competition Commission of India (CCI), in the latest edition of its quarterly newsletter Fair Play, emphasised its ongoing commitment to fostering a culture of voluntary compliance with competition law across industries. In the 50th volume, CCI Chairperson Ravneet Kaur highlighted the organisation’s focus on promoting awareness and encouraging businesses to integrate competition compliance into their core practices.
“In addition to regulatory reforms, CCI continues to engage in active advocacy efforts. Our various outreach initiatives, including workshops, training programs, and seminars, have helped promote a deeper understanding of competition law and foster a culture of compliance across industries. The Commission remains dedicated to encouraging voluntary compliance and raising awareness among stakeholders about the benefits of a competitive market environment”, added Kaur in her Message to the newsletter.
The major highlight of the quarter is the culmination of the regulatory framework review process for mergers and acquisitions, set in motion by the Competition Amendment Act 2023. All provisions related to the regulation of combinations introduced by the Act were notified to come into effect from September 10, 2024. Alongside these notifications, the CCI also introduced a new set of regulations titled The Competition Commission of India (Combinations) Regulations, 2024, which replace the previous regulations from 2011. These new regulations were developed after extensive consultations with stakeholders and aim to align with the revised legal framework.
A significant change is the introduction of the ‘deal value test,’ which complements the existing asset and turnover thresholds for merger notifications. Under this new provision, transactions where the deal value exceeds ₹2,000 crore and the target enterprise has substantial business operations in India must be notified for approval. This move is intended to allow the CCI to assess transactions in sectors where traditional financial thresholds do not adequately capture competition concerns.
Another important development is the amendment allowing the implementation of open offers or the acquisition of shares through regulated stock exchanges without violating standstill obligations. The new regulations specify the timing and manner for notifying such transactions.
“The new set of rules introduced pursuant to the amendment to the Competition Act also go further than providing legal certainty to the stakeholders as regards the scheme of exemptions etc. and are aimed to ensure the optimal regulatory balance. These new set of regulations are designed to streamline competition law enforcement in India, enhance clarity for businesses during the merger process. The Commission has continued to ensure that combinations do not harm competition in the market. In this quarter, we approved several key mergers and acquisitions after a detailed analysis of their potential impact on market competition”, added Kaur.
As the CCI sharpens its focus on promoting competition and protecting consumer welfare, the Chairperson expressed optimism that the changes brought about by the Competition Amendment Act, 2023, will further strengthen India’s competition law framework and position the CCI as a proactive regulator in a dynamic global economy.
Making CCI future-ready
Over the past year, the CCI has undertaken several initiatives to enhance its capacity and prepare for the evolving dynamics of the market economy. Notably, it operationalised amendments to the Competition Act, 2002, such as deal value thresholds to address acquisitions in the digital economy and provisions for settlements and commitments to expedite case resolutions.
The CCI has also focused on capacity-building by establishing a Digital Markets and Data Unit to tackle challenges posed by big tech, while its market studies on Artificial Intelligence and e-commerce reflect a proactive approach to understanding emerging competition issues. Additionally, the adoption of revised merger timelines and revamped exemption lists underscores its commitment to streamlining processes. These steps collectively aim to position the CCI as a future-ready regulator, capable of fostering fair competition and safeguarding consumer interests in a rapidly changing economic landscape.