Mon Sep 09 15:58:12 UTC 2024: ## India’s Competition Commission Gets New Power to Scrutinize Big Ticket Acquisitions
**New Delhi, September 09, 2024** – The Indian government has finally implemented a long-awaited provision that brings large acquisitions under the purview of the Competition Commission of India (CCI). This move, part of the Competition Amendment Act 2023, will come into effect on September 10.
The provision establishes a deal value threshold (DVT) of Rs 2,000 crore. Any merger or acquisition exceeding this amount, involving a target enterprise in India with a substantial business presence in the country, will now require CCI approval.
This provision aims to regulate high-value transactions, especially in the digital space. Experts believe it aligns India’s merger control regime with global standards like those in the US, Germany, and Austria.
While welcomed by some, concerns have been raised about the impact on ease of doing business. The CCI will need to ensure it can efficiently process the increased number of applications without delaying deals.
The new regulations also change existing rules regarding the “de minimis” exemption, which previously allowed transactions below a certain asset or turnover threshold to bypass CCI scrutiny. Companies with deals already in progress, or those planning to sign on or after September 10, will need to assess their reportability status under the new DVT criteria.
The implementation of the DVT is expected to significantly impact the M&A landscape in India, and the CCI’s ability to handle the increased workload will be key in ensuring a smooth transition.
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