The Deal Value Threshold Paradigm: Scrutinizing the Competition (Amendment) Act 2023 on Big Tech M&A
Kavita Menon
Senior Associate, Competition & Antitrust
Faculty of Law, University of Delhi
An in-depth analysis of the Deal Value Threshold (DVT) of ₹2,000 Crore introduced by the Competition (Amendment) Act 2023. We examine how non-asset digital startups with substantial business operations in India are now captured in CCI’s mandatory merger notification dragnet.
1. The Killer Acquisition Conundrum
Historically, Section 5 of the Competition Act, 2002 evaluated merger notifications exclusively on the basis of **Asset** and **Turnover** thresholds. Digital market leaders routinely bypassed merger scrutiny by acquiring nascent startups with negligible immediate turnover but immense user-data dominance.
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2. Deciphering the Deal Value Threshold (DVT)
The Competition (Amendment) Act, 2023 introduced Section 5(d): - Any transaction where the total **deal value exceeds ₹2,000 Crore (~$240M USD)** AND - The target enterprise has **Substantial Business Operations in India (SBOI)**.
Under the CCI (Combinations) Regulations 2024, SBOI is triggered if: - The target has 10% or more of its global active users/subscribers in India; or - Gross Merchandise Value (GMV) from Indian transactions exceeds ₹500 Crore.
Kavita Menon
Senior Associate, Competition & Antitrust • Faculty of Law, University of Delhi
Kavita advises sovereign wealth funds and multinational tech corporations on merger control before the Competition Commission of India (CCI).
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