Competition Amendment Bill, 2023 cleared by both Houses of Parliament: These are 5 major amendments

Both the Lok Sabha and Rajya Sabha passed the Competition (Amendment) Bill, 2022, which seeks to amend the Competition Act, of 2002. The amendments have been on several aspects of the existing framework. It was cleared at the Lok Sabha on March 29. 

Here are the major amendments that have been made in the bill:

1. Overall time-limit reduced 

The bill proposes to reduce the overall time limit for assessment. Previously, the duration of the assessment used to be 210 days, but now it needs to be completed within 150 days from the date of filing of the combination notice by the parties. “Prima facie opinion be framed on combination notifications within a time period of 30 days from the receipt of such notice, failing which the combination shall be considered as deemed approved,” mentioned the Finance Ministry in its release. 

2. Commission can appoint DG
 

The amendment proposes that the Commission should have the power to appoint the Director General (DG), instead of the Central Government, for bringing in more operational and administrative efficiency in the functioning of the Commission. However, the Ministry clarified that such an appointment will be after the prior approval of the Central Government - as a check and balance and to ensure the independence of the working of the office of DG. 

3. Introduction of a Green Channel route

A Green Channel route will be introduced for certain combinations which shall be eligible for deemed approval in a trust-based framework, upon the filing of a combination notice. The Green Channel Route is an automated approval scheme that acts as a filter for certain kinds of merger transactions or combination filings which is devoid of any risk of harm to competition regimes. The Competition Commission of India (CCI) introduced a Green Channel in 2022, for the automatic approval of combinations. This is a first-of-its-kind, trust-based system, where notifiable transactions having no overlaps are approved upon filing. 

4. Size of the transaction test introduced 
 

To be at par with the best global practices, the size of the transaction test will be introduced in terms of ‘value of transaction’ as another criterion for notifying combinations, confirmed sources from the Ministry. “All deal values involving acquisitions, mergers and amalgamations exceeding Rs. 2000 crore having target enterprise in India shall be notified to the Commission for approval before their consummation,” added the release from the Ministry. 

5. Introduction of a Settlement and Commitments framework

The amendment has proposed the introduction of a Settlement and Commitments framework so that in cases of abuse of dominance and anti-competitive agreements (except for horizontal agreements), third parties can claim compensation, if aggrieved.