DIGITAL MERGER AND ITS CHALLENGES TO THE COMPETITION LAW: INDIAN LAWS

The rapid rise of digital platforms has fundamentally transformed the Indian economy, ushering in unprecedented levels of connectivity, convenience, and innovation. However, this digital revolution has also brought forth unique challenges for competition law, particularly in the realm of mergers and acquisitions. In this paper, we delve into the intricacies of digital mergers within the framework of Indian competition law. We explore how the traditional geographic boundaries that once defined market competition become increasingly irrelevant in the context of online platforms, where users can interact and transact across borders effortlessly. Additionally, we examine the concept of multi-sided markets, where platforms cater to multiple user groups whose interactions generate network effects and drive value creation. These network effects pose significant challenges for competition authorities, as dominance in one market segment can spill over into adjacent markets, further entrenching the position of dominant platforms. Against this backdrop, we analyze the relevant provisions of the Competition Act, 2002, and the evolving approach of the Competition Commission of India (CCI) in assessing digital mergers. Notably, we highlight the introduction of a deal value threshold and the CCI’s heightened focus on factors such as substitute platforms and the potential for new entrants to mitigate competitive concerns. By navigating these complexities and adapting to the digital landscape, Indian competition law aims to foster innovation, protect consumer welfare, and ensure a level playing field in the dynamic and rapidly evolving digital economy.