Expedite M&As that pose no competition threat: FM Sitharaman to CCI

Antitrust regulator must balance 'regulatory vigilance with a pro-growth mindset', says Nirmala Sitharaman

Highlighting the need for a right balance between “regulation and freedom”, Finance Minister Nirmala Sitharaman on Tuesday said while regulatory frameworks must be rigorous, they should facilitate swift approvals for combinations (mergers & acquisitions) that did not harm competition.

 

She was speaking at the 16th Annual Day of the Competition Commission of India (CCI).

 

“In an export-challenged, environment-challenged, energy-challenged, and emissions-challenged world, the increased reliance on domestic growth levers requires ensuring the right balance of regulation and freedom,” she said. “Delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines, and potentially erode the intended value of transactions.”

 

The CCI’s green-channel mechanism allows automated approval for combinations deemed to have no appreciable adverse effect on competition, seeking to reduce transaction costs and timelines for benign mergers & acquisitions (M&As).

 

“Regulators must be guided by the principle of ‘minimum necessary, maximum feasible’ in order to balance regulatory vigilance with a pro-growth mindset,” Sitharaman said, adding this would help build a resilient, equitable and innovation-driven economic framework in India. As India integrates further with global value chains and digital ecosystems, maintaining open markets will be crucial to its competitiveness, she said. 

 

The CCI has so far cleared 1,265 of 1,284 M&A proposals and disposed of 1,200 of the 1,300 antitrust cases.

 

Sitharaman said India’s structural reforms, such as asset monetisation, disinvestment and digital public infrastructure, were unlocking market potential and deepening competition.

 

Digital markets are facing challenges due to asymmetries in data access and cross-border implications of business models. “The rise of cross-border digital monopolies demands global cooperation and agile regulation,” she said.

 

Businesses are forced to listen, serve and improve — not out of goodwill, but out of necessity. Prices fall not due to charity but because someone else is willing to offer the same product for less. “Quality improves not due to a sense of ethics but because mediocrity is punished by market forces.” 

• Merger review timelines under the new Competition Amendment Act have been cut from 210 to 150 days, after which approval is deemed granted. The CCI must now form a prima facie view within 30 days of a combination filing 
• The CCI has cleared 1,265 of 1,284 M&A proposals and disposed of 1,200 of 1,300 antitrust cases