Redefining Merger Control in India: The Impact of the Deal Value Threshold in the 2023 Competition Reforms

The Competition (Amendment) Act, 2023, introduces significant changes to India's competition law framework, signaling a new era for merger and acquisition (M&A) regulation. These amendments, particularly concerning the legislative framework for combinations, are expected to expand the Competition Commission of India's (CCI) role while potentially increasing transaction costs for parties involved. Aimed at balancing competition, innovation, and market concentration, these changes reflect an evolving approach to merger control in India. This paper examines the implications of the Amendment Act on India's competition framework, with a focus on the newly introduced deal value threshold (DVT) in the notifiability assessment. The DVT enables the CCI to consider the broader economic impact of mergers, including non-price factors that may influence competition. However, practical challenges remain, particularly regarding the effective implementation of DVT and the added administrative burden on the CCI. Through a multi-jurisdictional analysis, this paper compares India's amended approach with global antitrust standards, highlighting where it aligns and diverges from international norms. By examining recent CCI decisions and the provisions of the Draft Regulations on Combinations, 2023, this paper identifies existing ambiguities within the merger control regime and offers targeted recommendations to enhance the effectiveness of DVT. These suggestions aim to align India’s competition law with the unique needs of its market while incorporating best practices from international antitrust frameworks to foster fair competition and support ease of business.