CCI Scrutinizes Digital M&A Deals for Antitrust Breaches

The Competition Commission of India (CCI) is examining deal values in M&A transactions in the digital market sector to identify 'killer' or 'creeping' acquisitions. CCI Chairperson Ravneet Kaur highlights concerns over larger digital platforms acquiring smaller companies or talent to stifle competition, a pattern observed in the US and EU.

The Competition Commission of India (CCI) is delving into the valuation of M&A transactions within the digital market sector. Their focus is to ascertain if these deals could potentially be 'killer' or 'creeping acquisitions', according to an official statement made on Wednesday.

CCI Chairperson Ravneet Kaur informed that the antitrust body is scrutinizing the monetary values tied to zero-priced digital models. The commission is aiming to determine whether such transactions aim to suppress competition without clear asset turnover thresholds. Kaur addressed these concerns at the CII Global Economic Policy Forum 2024.

In addition, Kaur spotlighted the issue of larger firms on digital platforms utilizing GenAI and poaching staff from burgeoning startups, a strategic move drawing parallels with trends in the US and EU. Although not yet a focus in India, CCI is considering future actions should the necessity arise to address this competition concern.

(With inputs from agencies.)