The 2023 Competition Act amendments introduce the Deal Value Threshold (DVT) to prevent anti-competitive M&A deals in India’s digital markets.
Authors
Sidharth Chauhan, Jindal Global Law School, O.P. Jindal Global University, Sonipat, India; Jindal Initiative on Research in IP and Competition, Sonipat, India; Berkman Klein Center for Internet & Society, Harvard University, Cambridge, MA, United States
Dhruv Mehta, Khaitan & Co. Centre for Business Law, Sonipat, India
Summary
In 2023, the Indian Parliament introduced amendments to the Competition Act, 2002. The primary focus of these amendments is to provide regulatory certainty, ensure faster market correction, and provide a trust-based business environment in India. These amendments also aim to give the Competition Commission of India (CCI) adequate power to ensure that no anti-competitive practices are undertaken in India.
A plethora of amendments have been enacted, and one of the key amendments impacting M&A is the introduction of the Deal Value Threshold (DVT) while retaining the asset and turnover test. The rationale for this amendment is to ensure digital markets are covered within the ambit of DVT and to ensure that no anti-competitive M&A deals are undertaken in the digital market space.
The impact of the new additional threshold in India has been analyzed, and the loopholes in the DVT framework have been highlighted. The impact of DVT on M&A deals undertaken in India has been showcased. In addition, solutions have been provided that can be adopted by the CCI in order to plug the loopholes in this new framework to make it comprehensive.
Published in: Antitrust Bulletin
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