The Competition (Amendment) Act, 2023, which seeks to amend certain provisions of the Competition Act, 2002 received the assent of the President of India on April 11, 2023. This note provides an overview of the key changes to the Competition Act provided in the Competition (Amendment) Act, 2023.
The rise of the digital sector has presented unique challenges for Indian regulatory authorities, including the Competition Commission of India (“CCI”), thanks to significant differences in the way such markets operate compared to traditional markets. There is growing demand, worldwide and in India, to hold digital platforms responsible and accountable for adverse impacts caused by them. A preliminary step involved in such probes is that of defining a ‘relevant market’ within which such digital platforms operate. This note analyzes the CCI’s approach on defining a ‘relevant market’ in the digital sector so far, and the need of the hour in terms of considering all substitutable and interchangeable products or services while defining such markets.
On March 27, 2022, PVR Limited announced that it proposes to merge with INOX Leisure Limited. The combined entity will be rebranded as ‘PVR INOX’ and will have a network of 1,546 theatres. Ordinarily, a deal of such magnitude would have required prior approval from the Competition Commission of India, however the decreased revenue of the parties owing to the pandemic appears to have provided a unique benefit to this deal. This note analyzes the market positions of PVR and INOX, the role of the CCI, and the target based exemption that is applicable to this deal.
By way of an order dated December 17, 2021, the Competition Commission of India (“CCI”) has fined Amazon.com NV Investment Holdings LLC (“Amazon”) an amount of INR 200 crore for suppression of facts in its application to the CCI for approval of its proposed acquisition of 49% of the shares of Future Coupons Private Limited (the “Amazon Acquisition”). The CCI has also directed Amazon to file a fresh application for approval of the Amazon Acquisition and stated that until disposal of the fresh application to be filed by Amazon, the earlier approval order of the CCI shall “remain in abeyance”.
This note analyses this decision of the CCI, including the basis for the CCI’s suspension of its approval and Amazon’s internal material considered by the CCI.