A parliamentary panel has urged the government and the Competition Commission of India (CCI) to review the current Rs 2,000 crore deal value threshold (DVT) for mergers and acquisitions, warning it could inadvertently allow large corporations to acquire micro, small and medium enterprises (MSMEs) without regulatory oversight.
The recommendation came from the Standing Committee on Finance in its report on the evolving role of the CCI in the economy, particularly in the fast-changing digital sector. The report was tabled in Parliament on Monday.
From ‘post-mortem’ to proactive regulation
The committee said the CCI must shift from a reactive, after-the-fact approach to a more proactive oversight model to keep pace with new digital business models disrupting traditional markets.
It recommended expanding sector-specific market studies to cover emerging areas, with findings feeding directly into policy decisions. “A lower threshold for acquisitions involving MSMEs could be considered if market studies indicate so,” the report said.
Curbing predatory pricing and data dominance
The panel also pushed for stronger action against predatory pricing and deep discounting by dominant online platforms, which it warned could harm small retailers.
It proposed:
Clear guidelines on when such practices cross into anti-competitive territory.
Mechanisms to give smaller businesses access to essential data, allowing them to compete with large digital companies that control vast datasets.
Penalties stuck in litigation
The report highlighted a major enforcement challenge, litigation delays.
As of April 30, 2025, the CCI had imposed penalties worth Rs 20,350.46 crore. However, Rs 18,512.28 crore of that amount is either stayed or dismissed by appellate courts. Of the Rs 1,838.19 crore “realisable” amount, the CCI has collected Rs 1,823.57 crore, a 99.2 percent recovery rate for uncontested penalties.
The panel urged the CCI and Ministry of Corporate Affairs (MCA) to explore ways to reduce litigation delays, especially in complex digital market cases.
Digital Competition Bill needs careful rollout
While supporting new provisions in the Digital Competition Bill (DCB) to align with global best practices, the panel cautioned that its implementation should be nuanced, phased, and evidence-based.
It stressed the need to balance regulation with innovation, and to avoid imposing excessive compliance burdens on Indian tech start-ups and MSMEs.
(With inputs from ANI)
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