Competition Act, 2002
India’s Competition Act, enacted to replace the old MRTP Act, establishes the Competition Commission of India (CCI) with a mandate to promote market competition, prevent monopolistic and unfair trade practices, and protect consumer interests. It addresses anti-competitive agreements (Section 3), abuse of dominance (Section 4), and requires approval for significant mergers, acquisitions, or asset sales (Sections 5–6).
Deal Value Threshold: Now, transactions globally worth ₹2,000 crore+ (approx. USD 240 million) require CCI approval if the target has substantial operations in India.
Defining Substantial Operations: A target meets this if at least 10% of its global turnover, GMV, or user base comes from India, ensuring even digital-only businesses are covered.
Comprehensive Valuation: Deal value now includes all forms of consideration, cash, debt assumption, earn-outs, options, and tech/IP payments, for a full reflection of financial impact.
Green Channel & Standstill Rule: Low-risk deals with no overlap are auto-approved via a “Green Channel,” but control cannot be exerted until clearance is granted to prevent “gun-jumping”.
Accelerated Review Timelines: CCI gives an initial decision in 30 calendar days and completes full review within 150 days to speed up merger clearances.
Global Turnover Basis: Penalties for anti-competitive behaviour are now based on global turnover/assets, not just Indian revenue, to strengthen enforcement.