Reassessing Competition Policies in India's Digital Economy
A parliamentary panel recommends reassessment of India's Rs 2,000 crore deal value threshold for mergers to prevent large corporations from acquiring MSMEs without scrutiny. It urges the Competition Commission of India (CCI) to adopt proactive strategies to regulate the digital economy and address anti-competitive practices effectively.
- Country:
- India
On Monday, a parliamentary panel called for a reassessment of the Rs 2,000 crore deal value threshold for mergers and acquisitions in India. The suggestion aims to prevent large corporations from acquiring micro, small, and medium enterprises (MSMEs) without regulatory scrutiny, thus ensuring fair competition.
The panel emphasized the need for the Competition Commission of India (CCI) to shift from a reactive 'post-mortem' approach to a proactive strategy in regulating the dynamic digital economy. It recommended that the CCI expand its sector-specific market studies to emerging business models that disrupt traditional competition and align policies accordingly.
The report also highlighted legal challenges that undermine CCI's enforcement capabilities, urging collaboration with the Ministry of Corporate Affairs to reduce litigation delays. The proposed inclusion of the Digital Competition Bill demands careful management to balance fair competition with innovation and minimize compliance burdens on Indian tech firms and MSMEs.
(With inputs from agencies.)
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