Deal Value Threshold: Is It A Deal Breaker?

Advent of Deal Value Threshold

In 2018, the Ministry of Corporate Affairs ('MCA') constituted the Competition Law Review Committee ('CLRC') to "recommend a robust competition regime by taking the inputs of key stakeholders, and suggest changes in both the substantive and procedural aspects of the law". The CLRC prepared a report of its observations and recommendations and submitted the CLRC Report to the MCA in July, 2019. The Committee deliberated the need to introduce a new threshold (other than the existing asset and turnover threshold) to be able to adapt to the constantly evolving digital market. One of the key CLRC Report recommendations was introduced to meet this challenge enabling the Government to formulate new thresholds to notify a transaction based on broad parameters, as necessary.