At August 2022, the bill was presented in the parliament where Lok Sabha of the parliament passed the Bill on March 29, 2023 and Rajya Sabha of the Indian parliament passed the Competition (Amendment) Bill, 3 April, 2023.
The Bill seeks to amend the Competition Act, 2002, which gives the Competition Commission of India (CCI) its powers to prevent practices that harm competition and the interests of consumers.
Introduction Of A Deal Value Threshold For Mergers & Acquisitions
No Prior Provision any Deal Value approval or Scope of CCI.
Deals with a transaction value of more than Rs 2,000 crore will require CCI’s approval.
Reduced in Time Limit in CCI Approval
Section 6 (2A) of the Act provides that a combination notified to the Commission shall not come into effect for a period of 210 days from the date of notification or the approval of the Commission, whichever is earlier.
The bill proposes to reduce the timeline for the CCI to pass an order on such transactions from 210 days to 150 days.
Expands The Scope Of Entities That To Be A Part Of Anti-Competitive Agreements
Enterprises or persons engaged in similar businesses can be held to be a part of anti-competitive agreements.
The bill expands this to also include enterprises or persons who are not engaged in similar businesses.
Deposit Requirements For Appeal Against A CCI Order
No Required Any deposit for Appeal against a CCI Order.
Bill mandates depositing 25% of any amount levied by CCI prior to filing an appeal against a CCI order.
Intimate Before Consummation of Combination under Merger or Amalgamation.
Shall Give Notice to Commission within 30 Days of approval of Proposal relating merge or amalgamation.
Remove the word “30 days” and Insert “Consummation* of the Combination”.
*A contract is said to be consummated of Merge, when everything to be done in relation to it, has been accomplished.
Compute Penalty Based on Global Turnover
Impose Such Penalty shall not more than 10% of Average of Relevant Market Turnover for last 3 preceding year.
Remove the word “Relevant Market Turnover” and Insert “Global Turnover*”. *Global turnover is the turnover derived from the sales of goods or services.