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.
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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