- Thresholds for pre-merger
notification increased by 100%.
- Target de-minimis threshold increased
for a pre-merger notification
A. BACKGROUND
Under the Competition Act, 2002
("Act"), the Government is required to
enhance or reduce the financial thresholds triggering a pre-merger
notification before the Competition Commission of India
("CCI"), every two years on the basis of
the wholesale price index or fluctuations in exchange rate of rupee
or foreign currencies. The Government has also the power to provide
exemptions to certain enterprises from the provisions of the Act in
public interest. Based on these powers conferred on the Government,
on March 4, 2011 the Government had (a) increased the thresholds
under section 5 of the Act by fifty percent and (b) provided
exemption from pre-merger notification for targets which did not
meet certain de-minimis thresholds ("2011
Notification"). The present notifications dated March
4, 2016 increases (a) the thresholds
