India is a major overseas market for many global tech giants including Meta and Google. Now the South Asian country is gearing up to raise its voice for global M&A deals.
New Delhi has proposed amendments to its Competition Act, 2002, to allow local oversight (Competition Commission of India) for all foreign deals worth more than $252 million in value for firms with “substantial business operations in India” There are many changes involved, including necessity. ,
India, the world’s second largest internet market, which has attracted tens of billions of dollars in investments from venture capitalists including Meta, Google and Amazon and SoftBank, Sequoia and Tiger Global, has traditionally scrutinized deals based on asset size. and not on the basis of transaction value. According to law firm Shardul Amarchand Mangaldas, the Indian regulator has approved over 700 filings in the past decade alone.
But it seems that things are changing and trying to equate India’s position with China, the US and Europe.
“Indian markets have grown significantly and the way businesses operate has changed over the past decade. In view of the economic growth, emergence of various business models and the experience gained from the working of the Commission, the Government of India constituted Competition Law Review Committee to examine and suggest amendments to the said Act. Bill published Friday afternoon Told.
The following changes have been proposed in the Competition (Amendment) Bill, 2022:
(a) changes in certain definitions such as “enterprise”, “relevant product market”, “group”, “control”, etc., to provide clarity;
(b) broaden the scope of anti-competitive agreements and include a party facilitating an anti-competitive horizontal agreement under such agreements;
(c) the reduction of the time limit for approval of connections from two hundred and ten days to one hundred and fifty days and provision for the formation of a prima facie opinion by the Commission within twenty days for expeditious approval of connections;
(d) the provision of “transaction value” as another criterion for notifying the combinations to the Commission;
(e) the limitation period of three years for filing information on anti-competitive agreements and abuse of dominant position before the Commission;
(f) the appointment of the Director-General by the Commission with the prior approval of the Central Government;
(g) introduction of settlement and commitment framework to reduce litigation;
(h) encourage parties in an ongoing cartel investigation to lessen penalties for disclosing information about other cartels;
(i) substituting a provision for contravention of an order of the National Company Law Appellate Tribunal with a provision for contempt of a fine which may extend to one crore rupees, or with imprisonment of either description for a term which may extend to three years, or with both;
(j) to issue guidelines including penalties to be imposed by the Commission.