Dec 21, 2023
India is increasingly becoming a key jurisdiction for foreign investment. To keep the momentum going, the Indian government has consistently attempted to keep the business environment friendly and less burdensome. This includes: a reduction in corporate tax rates; easing the liquidity problems of non-banking financial corporations and banks; foreign direct investment policy reforms; and easing compliance norms – all with the aim of promoting ‘ease of doing business in India’. After more than a decade, India’s competition law has recently been amended, bringing about key changes that will impact businesses. The 2023 Amendments to the Indian Competition Act 2002 (the Act) introduce changes that several antitrust jurisdictions are still considering. The 2023 Amendments are a mixed bag of changes: several are business friendly – such as commitments and settlements, expedited merger review timelines and introducing a leniency-plus regime – while others aim to achieve greater regulatory oversight and stricter enforcement, such as deal value thresholds, penalties on global turnover and increased liability for hubs in ‘hub-and-spoke’ cartels. The Competition Commission of India (CCI), the body entrusted with the responsibility to nurture and maintain well-functioning markets that facilitate the growth manifested by the Indian government, must adopt a balanced approach to ensure that competition enforcement does not get in the way of ‘economic growth’ as envisaged under the Preamble of the Act. This article examines the impact of the 2023 Amendments on the Indian market. In particular, the writers examine the CCI’s approach in adopting these tools and tailor it according to the requirements of the Indian economy.