Dr. Khalid Khan, Managing Partner | khalid.khan@insightjuris.in

India’s competition law regime has developed substantially since the enactment of the Competition Act, 2002, which replaced the Monopolies and Restrictive Trade Practices Act, 1969. As India’s markets have become larger, more integrated, and increasingly digital, the competition law framework has continued to evolve. The most significant recent development is the Competition (Amendment) Act, 2023, which introduces important changes to merger control, enforcement, and procedural mechanisms. At the same time, policy discussion continues regarding a dedicated framework for digital competition.

For businesses operating in India, competition law is now a core regulatory consideration. The Competition Commission of India (CCI) has become more active in enforcement, potential penalties have increased, and the range of conduct and transactions subject to scrutiny has broadened. This article sets out the principal features of the Indian competition law regime, the key reforms introduced by the 2023 amendment, and the principal compliance issues for businesses.

The Statutory Framework

The Competition Act, 2002 is the principal legislation governing competition law in India. It is enforced by the CCI, which has powers to investigate anti-competitive conduct, adjudicate contraventions, and impose penalties. Appeals from CCI orders lie to the National Company Law Appellate Tribunal (NCLAT), with a further right of appeal to the Supreme Court of India.

The Act is structured around three principal prohibitions:

• Anti-competitive agreements under Section 3.
• Abuse of dominant position under Section 4.
• Regulation of combinations under Sections 5 and 6.

Anti-Competitive Agreements

Section 3 prohibits agreements that cause, or are likely to cause, an appreciable adverse effect on competition in India.

Horizontal agreements, including cartels, bid-rigging, price-fixing, and market allocation arrangements, are treated with particular seriousness. Certain horizontal arrangements are presumed to have an appreciable adverse effect on competition, reflecting the legislature’s view that coordination between competitors poses a direct threat to the competitive process.

Vertical agreements, such as exclusive supply or distribution arrangements, tie-in arrangements, and resale price maintenance, are assessed on a more contextual basis. The CCI considers both restrictive effects and any possible pro-competitive justifications or efficiencies.

Cartel enforcement remains a priority for the CCI. In practice, this continues to be one of the highest-risk areas of Indian competition law for businesses operating in concentrated markets, distribution-heavy sectors, or procurement environments.

Abuse of Dominant Position

Section 4 does not prohibit dominance itself; rather, it prohibits the abuse of a dominant position. Dominance is assessed by reference to an enterprise’s ability to operate independently of competitive constraints or to affect competitors or consumers in its favour.

The Act identifies several forms of abusive conduct, including:

• Unfair or discriminatory pricing, including predatory pricing.
• Limiting production, markets, or technical development.
• Denial of market access.
• Imposition of supplementary obligations unrelated to the subject matter of the contract.
• Leveraging dominance in one market to protect or enter another.

The CCI’s approach to digital markets has drawn increasing attention in recent years. Issues such as self-preferencing, platform neutrality, access to data, and ecosystem lock-in have become central to how dominance and abuse are analysed in technology-enabled sectors.

Merger Control

Sections 5 and 6 of the Act regulate combinations, including mergers, acquisitions, and amalgamations. Transactions meeting the prescribed thresholds require prior notification to the CCI before they may be consummated. The CCI then considers whether the proposed combination is likely to cause an appreciable adverse effect on competition in the relevant market.

The CCI may approve a combination unconditionally, approve it subject to modifications, or, in rare cases, prohibit it.

The Competition (Amendment) Act, 2023 has significantly affected merger control in India. Most notably, it introduces a deal value threshold. Transactions valued at INR 2,000 crore or more may now require notification where the target has substantial business operations in India, even if the traditional asset or turnover thresholds are not met. This change is particularly relevant for digital, technology, and asset-light businesses.

The amendment also introduces the concept of material influence, which lowers the threshold for control analysis. In practical terms, minority investments, governance rights, and board participation may now trigger merger control analysis more readily than under the previous approach.

The merger review timeline has also been compressed. The CCI must form a prima facie view within 30 days, and the overall statutory timeline for review has been shortened. As a result, transaction planning and regulatory analysis must now be undertaken at a much earlier stage.

Key Features of the 2023 Amendment

The Competition (Amendment) Act, 2023 is the most substantial revision of India’s competition law framework in recent years. Its principal features include:

• Deal value threshold: Notification may be required for certain transactions valued at INR 2,000 crore or more where the target has substantial business operations in India.
• Material influence: A lower threshold for control assessment, broadening the range of transactions potentially subject to notification.
• Faster merger review: A compressed review timetable and a 30-day prima facie assessment period.
• Settlement and commitment: A new mechanism allowing settlement or commitments in relation to certain non-cartel contraventions.
• Penalty framework: In specified cases, penalties may be assessed by reference to global turnover, increasing exposure for large and diversified groups.
• Consumer-agreement carve-out: Agreements between enterprises and end consumers are excluded from the scope of Section 3.

These changes are intended to make the regime more responsive to modern transaction structures and more effective in relation to conduct in concentrated and digital markets.

Enforcement Trends

The CCI and appellate courts continue to shape the content of Indian competition law through enforcement and judicial review. Cartel cases remain a central feature of enforcement activity, often supported by leniency applications and, in some instances, information from other jurisdictions.

Digital markets continue to attract close scrutiny. Self-preferencing, platform rules, search practices, and access to data are among the issues that have influenced the CCI’s developing approach to market power in technology-driven sectors.

Questions of jurisdiction also remain significant. In a number of sectors, including telecom, aviation, broadcasting, and pharmaceuticals, competition law issues may overlap with sector-specific regulation. Early assessment is therefore important where conduct or transactions implicate more than one regulatory regime.

Digital Competition Policy

A further area of ongoing policy development concerns whether India should adopt a dedicated ex-ante framework for digital markets. The Committee on Digital Competition Law has proposed a framework based on Systemically Significant Digital Enterprises, or SSDEs, with preventive obligations for designated large platforms.

The draft approach contemplates restrictions on practices such as self-preferencing, anti-steering, and bundling. It reflects a broader international trend toward regulating digital gatekeepers through targeted obligations rather than relying exclusively on ex-post enforcement.

At present, however, this remains a policy proposal and has not been enacted as law. Businesses operating in digital markets should nevertheless monitor developments closely, as any future framework could materially alter compliance obligations.

Compliance Considerations

For businesses operating in India, competition law compliance should be integrated into commercial and strategic decision-making. The following areas are particularly important:

• Merger control diligence: Assess thresholds, control rights, and deal value at an early stage.
• Competition compliance programmes: Maintain policies addressing competitor interactions, pricing conduct, exclusivity arrangements, and information exchange.
• Leniency and settlement strategy: Understand the available mechanisms for cartel and non-cartel matters.
• Global turnover exposure: Factor in the broader penalty base applicable in relevant cases.
• Sectoral overlap: Consider interactions with industry-specific regulation where applicable.

A robust compliance framework is particularly important for businesses operating in distribution-heavy, procurement-sensitive, or digitally intensive markets.

Conclusion

India’s competition law regime has entered a more assertive and more sophisticated phase. The Competition (Amendment) Act, 2023 has expanded merger control, introduced new procedural tools, and increased penalty exposure, while policy discussions concerning digital competition suggest that further reform may be ahead.

For domestic and multinational businesses alike, early legal assessment and structured compliance planning are now essential to managing competition law risk in India.

Disclaimer: This article is intended solely for informational purposes. The opinions expressed are personal to the author and should not be regarded as legal advice or as a legal opinion, whether express or implied.

Nothing in this article is intended to encourage or discourage any particular action. Readers should seek independent legal advice before relying on or acting upon any information discussed herein. The author accepts no responsibility or liability, financial or otherwise, for any consequences arising from reliance on this article.