Author: Revanth Roy Chelluboyina, ICFAI law school, Dehradun
I. To the point
As of 2026, the Indian competition scenario has witnessed the most dramatic change since the enactment of the Competition Act, 2002. The transition from a purely ex-post (remedial) approach to a highly complex ex-ante (preventative) system heralds a new dawn in the regulatory environment. In light of the ever-accelerating digitalization of the economy and the imperative to counter the “gatekeeper” influence of Big Tech, the Competition Commission of India (CCI) finds itself equipped with a new set of tools. For the new-age corporate and start-ups, the compliance process has ceased to be a mere formality and has instead become an essential strategic imperative. This assignment will critically evaluate the four major planks of this new system: the Deal Value Threshold (DVT), Global Turnover fines, the Digital Competition Act, and the shift towards settlement-based outcomes.
II. Use of Legal Jargon
The Deal Value Threshold (DVT) and the Start-Up Ecosystem
One of the most significant developments in 2026 is the strict implementation of the Deal Value Threshold. In the past, merger notifications in India were based on asset and turnover thresholds. This enabled many large-scale acquisitions in the tech industry, also known as “killer acquisitions,” to go unnoticed since the acquired start-up had minimal assets and turnover but a huge number of users.
The INR 2,000 Crore Rule: Notifying the CCI under the 2023 Amendment is mandatory for any deal above INR 2,000 Crore if the target entity has “Substantial Business Operations” in India. In 2026, the CCI has clarified that SBO applies to targets with 10% of their total global “active users” or Gross Merchandise Value (GMV) from India.
Start-Up Notification Requirements: Start-ups are no longer exempt from CCI review simply because they are pre-revenue. In 2026, start-ups must be meticulous about collecting data on user base and GMV, which are now the key factors for merger notifications. Start-up founders must also consider “interconnected transactions,” where multiple transactions involving the same parties are consolidated to determine if the INR 2,000 Crore threshold is exceeded.
III. The Proof
The Global Turnover Penalty: A High-Stakes Game for Corporates
Perhaps the most intimidating of these changes for multinational corporations is the change in the calculation of penalties. After the 2023 Amendment, the CCI is now authorized to impose penalties based on Global Turnover from all products and services, and not merely “relevant turnover” in India.
The Deterrence Factor: Earlier, the Excel Crop Care (2017) decision capped fines at the revenue earned from the particular offending product. But in 2026, a company convicted of a vertical restraint in a small product category in India could be liable for a penalty of up to 10% of its total global revenue. This “Global Turnover” system has compelled MNCs to place Indian competition concerns on the global board of their corporations.
Corporate Compliance Programs (CCP): In this scenario, 2026 has witnessed the advent of the “Standardized CCP.” Corporates are now required to undertake periodic competition audits and dawn raid simulations. The CCI’s Penalty Guidelines 2024 indicate that the existence of a sound, pre-existing compliance program may be a mitigating circumstance in reducing the base penalty.
The Digital Competition Act and “Gatekeeper” Obligations
The 2026 regulatory framework is set by the Digital Competition Act (DCA), which is a complement to the 2002 Act. Modelled on the EU’s Digital Markets Act, the DCA targets Systemically Significant Digital Enterprises (SSDEs)—the big platforms that act as gatekeepers for digital services such as search engines, social media, and e-commerce.
Ex-Ante Obligations: Unlike the 2002 Act, which only steps in after an abuse of dominance has occurred, the DCA lays down “presumptive” obligations on SSDEs. These are:
1.Anti-Self-Preferencing: SSDEs are banned from favouring their own services or products (such as private labels) over those of rivals on their platforms.
2.Anti-Steering: Platforms are banned from hindering business users from offering better terms to consumers through alternative means.
3.Data Anti-Siloing: The most important rule in 2026 is the ban on SSDEs combining data from different services (such as messaging and payments) without the users’ specific, granular consent.
For start-ups, the DCA is a double-edged sword. While it shields them from bullying by gatekeepers, the “Associate Digital Enterprise” (ADE) provision means that a start-up that is closely associated with a Big Tech ecosystem may find itself inadvertently caught up in these onerous obligations.
V. Abstract
To ensure that cases are not pending in courts for decades, the CCI has implemented the Settlement and Commitment mechanisms.
1.Commitments are made in the early stage of an investigation (pre-DG report). They enable a company to modify its conduct without any admission of liability.
2.Settlements are post-investigation resolutions in which the company pays a settlement amount (which can be lower than the maximum penalty) to dispose of the case.
In 2026, this has become the most popular way for companies to deal with reputational risk. But it demands a high level of transparency. “Full and true disclosure” is required, and any deception will result in the withdrawal of the settlement and a “Gun-Jumping” fine for deceiving the Commission.
VI. Case Illustrations
1.The Byju’s-WhiteHat Jr Retrospective: In the previous regime, Byju’s acquisition of WhiteHat Jr (noted to be around $300 million) was not subject to CCI review since the assets/turnover of the target were below the then de minimis thresholds. In 2026, a transaction of this size (approx. ₹2,500 Cr) would be automatically notifiable under the DVT since it crosses the ₹2,000 Cr threshold and involves “Substantial Business Operations” in India through its user base.
2.The SBO Metric (Combination Regulations 2024): In the case of digital startups, the CCI has introduced the concept of “Substantial Business Operations” as follows: at least 10% of the global user base must be in India. For instance, if a social media startup in the US with 10 million users has 1 million users in India, a transaction of over ₹2,000 Cr would be required to be cleared by the CCI, even if the startup has zero revenue.
VII. Conclusion
Competition compliance in 2026 is no longer about avoiding fines but is now about “Competition by Design.” Corporates need to factor in global turnover risks into financial planning, while start-ups need to operate in a merger control regime where data and reach are more important than profit. The interplay between the Competition Act, 2002, and the Digital Competition Act has resulted in a strong but complex regime. With the CCI set to adopt AI-powered market monitoring, the burden of proof is now being shifted to the enterprises to prove that they are operating in a fair manner. In this high-stakes world, the cost of compliance is high, but the cost of non-compliance, from global revenue fines to loss of market access, is potentially terminal.
