Draft merger rules: Mega global deals likely to come within CCI ambit

The Competition Commission of India has introduced draft regulations for combinations or mergers, under the new competition Act, to bring global deals in the digital space, including those involving Big Tech companies, under its scanner.

The draft regulations would provide guidance on the valuation of merger transactions and the criteria for assessing sustainable operations in India for companies. The proposed rules mention that if the number of users and subscribers, or the turnover or gross merchandise value in India is over 10 per cent of the global figure, the company would be considered to have substantial business operation in India and would need CCI approval for the merger.