New Era of Indian Merger Control Regime

Year 2024 marked the new phase of Indian merger control through the notification of key provisions of the Competition (Amendment) Act, 2023, the enabling rules, and the CCI (Combinations) Regulations, 2024. Collectively, these reforms significantly shape India’s merger control framework by expanding jurisdictional reach, refining exemptions, and streamlining review timelines. 

A central reform is the enforcement of the Deal Value Threshold (“DVT”), introduced to capture high-value, asset-light transactions, particularly in digital markets that previously escaped scrutiny. Transactions exceeding ₹2,000 crore are now notifiable if the target has Substantial Business Operations in India, assessed through alternative tests based on Indian users of digital services, gross merchandise value, or turnover.  

The revised de minimis exemption increases asset and turnover thresholds to INR 450 crore and INR 1,250 crore respectively, reducing compliance burdens for small targets. However, transactions triggering the DVT cannot avail this exemption. The Green Channel regime has also been formally incorporated, allowing automatic approval for combinations with no horizontal, vertical, or complementary overlaps at the group and affiliate levels. 

Further, the earlier Schedule I exemptions have now been re-introduced in the Competition (Criteria for Exemption of Combinations) Rules, 2024, which clarify and tighten exemptions for minority acquisitions, intra-group transactions, spin-offs, and demergers. Procedurally, review timelines have also been shortened from 210 to 150 calendar days, with compressed interim deadlines. The reforms also introduce limited derogations from standstill obligations for open-market purchases and codify the framework for voluntary modifications. Overall, the new regime marks a more structured, and time-bound approach to merger control in India. 

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