3 weeks ago
Parliamentary Panel Urges Lower Deal Threshold for CCI Merger Scrutiny
Lawmakers in India are worried that big companies can buy smaller ones without anyone checking.
They think the amount of money a deal needs to be worth before it gets reviewed is too high.
Right now, deals under Rs 2,000 crore do not get checked by the competition watchdog called the CCI.
The lawmakers want that number to be lower so more deals are looked at carefully.
The government says the current rule is fine because people were asked about it before it started.
There are also worries about huge online platforms that sell things very cheaply to beat small shops.
The lawmakers want new rules about voice assistants and cloud services, which are not covered yet.
They also found that courts have stopped or cancelled most of the fines the CCI has given.
So even when companies break the rules, they often do not pay the penalty.
A parliamentary panel called for lowering the Rs 2,000-crore deal value threshold that triggers Competition Commission of India (CCI) review of merger and acquisition transactions.
The panel warned the existing threshold could allow large companies to acquire smaller businesses without adequate competition oversight, and suggested lower thresholds for deals involving MSMEs if market studies show gaps.
The deal value threshold, introduced under the 2023 amendments to the Competition Act, is meant to capture high-value deals where the target lacks substantial assets or turnover, such as tech startups.
The government defended the existing threshold, stating it was introduced in September 2024 after stakeholder consultations.
The panel also urged expanding the proposed Digital Competition Bill to cover virtual assistants and cloud services, and flagged that most CCI penalties have been stayed or dismissed by appellate courts.
- Who
- The Standing Committee on Finance, an Indian parliamentary panel, along with the Competition Commission of India (CCI) and the Ministry of Corporate Affairs.
- What
- The panel recommended lowering the Rs 2,000-crore deal value threshold for CCI oversight of mergers and acquisitions and expanding digital competition regulation.
- Where
- India
- When
- The recommendation follows the deal value threshold's introduction in September 2024; the panel's enforcement data runs to April 2025.
- Why
- To prevent large companies from making anti-competitive acquisitions unnoticed, particularly in digital markets where small retailers and startups face risks from dominant platforms.
Parliamentary Panel
Government
Deal value threshold level
Parliamentary Panel
The Rs 2,000-crore threshold is a one-size-fits-all trigger that lets potentially anti-competitive acquisitions escape CCI review; it should be lowered, including for MSME transactions.
Government
The existing threshold is adequate and was introduced in September 2024 after stakeholder consultations.
Data access for smaller businesses
Parliamentary Panel
Smaller businesses need a system ensuring data access to compete with large digital enterprises, whose predatory pricing and deep discounting pose a direct threat to small retailers.
Government
The Ministry of Corporate Affairs remained silent in its written reply on designing such a data-access system.
Digital market regulation approach
Parliamentary Panel
The ex-post competition framework is inadequate, so an ex-ante regime targeting systemically significant digital enterprises, plus coverage of virtual assistants and cloud services, is needed.
Government
The government has not indicated agreement with expanding the proposed Digital Competition Bill to cover these services.
Key facts
- Current deal value threshold
- Rs 2,000 crore
- Regulator
- Competition Commission of India (CCI)
- Legal basis
- 2023 amendments to the Competition Act
- Threshold effective since
- September 2024
- Total penalties imposed (till April 2025)
- Rs 20,350.46 crore
- Penalties stayed or dismissed by appellate courts
- Rs 18,512.28 crore
- Realizable penalties
- Rs 1,838.19 crore
- Penalties realised by CCI
- Rs 1,823.57 crore
Quotes
House Panel Member
Member of the parliamentary finance committee
“the “one-size-fits-all” DVT may fail to protect the digital ecosystem from gradual monopolization, as dominant platforms continue to leverage “invisible” market distortions – such as data silos and algorithmic self‑preferencing – that are not currently addressed by a codified regulatory framework”
financialexpress.com
Sources
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