Legal Chronicle

July 2025

Index

Understanding the Competition (Amendment) Act, 2023

1	Introduction
2	Driving Market Fairness and Efficiency: Objectives of the 2023 Competition Law Amendments
3	Key Highlights of the Competition (Amendment) Act, 2023
4	Critical Observations on India’s Evolving Competition Framework
5	Conclusion
6	Disclaimer
7	About Us
8	Our Team

Dear Reader,

The Legal Department at UJA is delighted to impart certain legal knowledge as construed under the Legal Chronicle to keep the readers aware of the recent updates and developments that revolve around various aspects of the law. Our goal is to enable our readers to develop a sense of familiarity with the complexities of both Indian and international law.

In this edition of Legal Chronicle, we examine the key reforms brought by the Competition (Amendment) Act, 2023 and their impact on India’s evolving antitrust landscape. As markets grow and digital business models expand, the amendment aims to modernize competition law through faster merger reviews, deal value thresholds, global turnover-based penalties and new enforcement tools. This article provides a brief yet insightful overview to help professionals and businesses navigate these changes with clarity and compliance.

We hope that this edition creates a sense of enthusiasm for our readers and successfully delivers the plethora of legal knowledge as intended. In case you have any feedback or need us to include any information to make this issue more informative, please feel free to write to us at legal@uja.in.

Introduction

The Competition (Amendment) Act, 2023 marks a significant milestone in the evolution of India’s competition law framework. Enacted to address the challenges of a rapidly transforming market, especially in the digital economy, the amendment seeks to enhance regulatory efficiency, promote fair competition and align domestic practices with global standards. From introducing a deal value threshold for mergers and acquisitions to empowering the Competition Commission of India (CCI) with stronger investigative tools, the Act aims to streamline enforcement, close legal loopholes and ensure timely resolution of anti-competitive practices.

Driving Market Fairness and Efficiency: Objectives of the 2023 Competition Law Amendments

Significant Growth of Indian Markets and Evolving Business Models
Over the past decade, India has witnessed rapid economic expansion, digital transformation and a surge in startup activity. Traditional business models have evolved dramatically, with increasing reliance on data, technology platforms and complex global supply chains. These developments exposed regulatory gaps in the existing competition framework, particularly in addressing digital mergers and platform dominance.

Constitution of the Competition Law Review Committee (CLRC), 2018
Recognizing the need to update the Competition Act, 2002 in line with these changing dynamics, the Government of India set up the CLRC in 2018. The committee was tasked with reviewing the existing legislation, identifying structural and procedural challenges and recommending reforms to enhance the effectiveness of the Competition Commission of India (CCI).

Recommendations of CLRC and Public Consultations (2019)
In 2019, the CLRC submitted a detailed report proposing various amendments, including introducing settlement mechanisms, revising merger thresholds and strengthening the investigative powers of the CCI. These recommendations were followed by extensive public and stakeholder consultations to ensure the proposed changes reflected both legal robustness and practical business considerations.

Objective: Regulatory Certainty and a Trust-Based Business Environment
The overarching goal of the amendments was to create a fair, transparent and predictable regulatory regime. By incorporating global best practices and addressing ambiguities in the original Act, the reforms aim to build investor confidence, facilitate ease of doing business and ensure a level playing field for all market participants especially in fast-changing digital and innovation-driven sectors.

Key Highlights of the Competition (Amendment) Act, 2023

Broadening the Scope of Anti-Competitive Agreements
The definition of anti-competitive agreements has been expanded to include parties who may not be direct competitors but are involved in facilitating such agreements. This includes intermediaries like trade associations, consultants and platforms, especially relevant in complex digital ecosystems.

Reduction in Time-limit for Review of Mergers & Acquisitions
The statutory timeline for the CCI to approve or block a proposed combination has been reduced from 210 days to 150 days, thereby speeding up regulatory clearance and improving the ease of doing business.

Introduction of Deal Value Threshold for M&A Notifications
A new threshold has been introduced, making it mandatory to notify the CCI of transactions where the deal value exceeds ₹2,000 crore, provided the target enterprise has “substantial business operations” in India. This addresses acquisitions of high-value startups and digital firms not captured under asset/turnover-based thresholds.

Limitation Period of 3 Years for Filing Information
A three-year limitation period has been introduced for filing complaints related to anti-competitive agreements or abuse of dominance. However, the CCI has discretionary power to condone delays if justified.

Penalties Indexed to Global Turnover
Penalties for violations may now be calculated based on a company’s global turnover, not just Indian turnover. This significantly increases the financial exposure of large multinational corporations and acts as a stronger deterrent.

Introduction of Settlement & Commitment Framework
The new resolution mechanism allows parties to settle or commit to corrective actions either during or before the completion of the investigation. This is intended to reduce prolonged litigation and enable quicker market corrections.

Hub and Spoke type arrangements brought under the presumptive rule of Appreciable Adverse Effect on Competition (AAEC)
Hub and spoke arrangements, where a central player facilitates collusion among competitors (e.g., suppliers via a common platform), are now expressly presumed to have an Appreciable Adverse Effect on Competition (AAEC), unless proven otherwise.

Leniency Plus Regime
This incentivizes entities involved in one cartel to disclose information about a second, unrelated cartel in exchange for an additional reduction in penalties. It enhances cartel detection and compliance.

Framing of Regulations after Public Consultations
The Act mandates that CCI will formulate key regulations only after public consultation, improving transparency and allowing stakeholders to provide inputs before final implementation.

Appointment of the Director General (DG) by CCI
The power to appoint the Director General, who investigates anti-competitive conduct, has been transferred to the CCI (with prior approval of the Central Government), ensuring better institutional alignment and independence in enforcement.

Critical Observations on India’s Evolving Competition Framework

Provision to Avoid Multiplicity of Proceedings:
The Amendment introduces a provision aimed at avoiding the multiplicity of proceedings before the Competition Commission of India (CCI). This provision empowers the CCI to reject information or complaints that have already been addressed or are substantially similar to matters previously adjudicated. The objective is to prevent repetitive or frivolous filings based on the same facts, whether by the same or different informants. By doing so, the amendment seeks to enhance procedural efficiency, reduce the burden on the Commission and ensure consistency in decision-making.
Provision Enabling Parties to Call Experts:
The Act introduces a provision allowing parties involved in proceedings before the Competition Commission of India (CCI) to call upon experts to support their case. These experts may include economists, legal professionals or industry specialists who can provide technical or specialized insights relevant to the matter under investigation.
Provisions That Allow Open Market Transactions:
The Competition (Amendment) Act, 2023 introduces a provision that allows parties to proceed with open market purchases of shares or securities (such as those made through stock exchanges) even before receiving approval from the Competition Commission of India (CCI), provided certain conditions are met. Specifically, such transactions must not grant the acquirer control or influence over the target company until the CCI clears the deal.

Conclusion

In conclusion, the Competition (Amendment) Act, 2023 represents a pivotal shift in India’s competition law framework, reflecting the country’s response to the challenges posed by a fast-evolving, digitally driven market landscape. By introducing time-bound merger reviews, a deal value threshold for high-value transactions, a limitation period for filing cases and penalties linked to global turnover, the amendment significantly strengthens the enforcement mechanism and enhances regulatory predictability. The inclusion of settlement and commitment frameworks, presumptive treatment of hub and spoke arrangements and institutional changes such as the CCI’s authority to appoint the Director General further demonstrate the intent to build a robust, efficient and globally aligned competition regime. These reforms not only address existing regulatory gaps but also equip the Competition Commission of India to respond more effectively to emerging market dynamics, thereby fostering a fair, competitive and transparent business environment in India.

Disclaimer

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