The January 2024 edition of our Antitrust and Competition newsletter explores the approvals accorded to certain critical combinations coupled with significant advisory and enforcement matters, such as the withdrawal of service tax demand by GST authorities, the resolution of allegations against PVR for potential abuse of dominance, among other contemporary topics. Additionally, this edition features a key regulatory update relating to interlocutory applications, introduced vide the CCI (General) Amendment Regulation 2024.

Merger Control and Combinations

1. On January 2, 2024, the Competition Commission of India (“CCI”) granted approval to a proposed transaction involving an acquisition of 100% shareholding of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Limited.

2. On January 9, 2024, the CCI granted approval for the acquisition of remaining 30% equity stake in Signet Excipients Private Limited by IMCD India Private Limited.

3. On January 11, 2024, the CCI granted approval for GIC’s proposed acquisition of Data Infrastructure Trust (“DIT”) unitholding whereby Valkyrie Investment Pte and Anahera Investments Pte, two wholly-owned subsidiaries of GIC would acquire the additional unitholding in DIT and the consequent rights in BIP India Infra Projects Management Services.

4. On January 15, 2024, the CCI granted approval (under the green channel route) to a proposed acquisition of equity stake in Manipal Health Enterprises Private Limited by Seventy Second Investment Company LLC.

5. On January 16, 2024, the CCI granted approval to the proposed amalgamation of: (A) Shriram LI Holdings Private Limited with Shriram Life Insurance Company Limited; (B) Shriram GI Holdings Private Limited with Shriram General Insurance Company Limited.

6. On January 23, 2024, the CCI granted approval for the acquisition of up to 38% of the share capital of MG Motor India Private Limited by JSW Ventures Singapore Pte Limited.

7. On January 23, 2024, the CCI granted approval for 100% acquisition of Wistron Infocomm Manufacturing (India) Private Limited by Tata Electronics Private Limited.

8. On January 23, 2024, the CCI granted approval for the merger of Fincare Small Finance Bank Limited and AU Small Finance Bank Limited.

9. On January 23, 2024, the CCI granted approval for the acquisition of shareholding in Religare Enterprises Limited by Puran Associates Private Limited, M.B. Finmart Private Limited, and VIC Enterprises Private Limited, Milky Investment and Trading Company.

10. On January 30, 2024, the CCI granted approval for the subscription of compulsorily convertible preference shares of API Holdings Limited by Goldman Sachs India AIF Scheme-1 and Goldman Sachs India Alternative Investment Trust AIF Scheme-2.

11. On January 30, 2024, the CCI granted approval for the subscription of compulsorily convertible preference shares of API Holdings Limited by MacRitchie Investments Pte. Ltd. and EvolutionX Debt Capital Master Fund 1 Pte. Ltd.

12. On January 30, 2024, the CCI granted approval to a proposed acquisition of additional shares in API Holdings Limited by Naspers Ventures B.V.

13. On January 30, 2024, the CCI granted approval to a proposed subscription of CCPS B in API Holdings Ltd. by CDPQ Private Equity Asia Pte Ltd.

Advisory and Enforcement Matters

1. CCI clears PVR of abuse of dominance allegations.

The CCI has rejected a complaint against PVR, alleging unfair treatment to filmmakers and production houses, and creation of entry barriers for independent filmmakers. The CCI, while dismissing the plea, ruled that there was lack of evidence to determine anti-competitive behavior, and further held that exhibitor’ autonomy in handling movies aligns with its business objectives and does not violate the provisions of the Competition Act, 2002 (“Act”).

2. CCI gives clean chit to Madhav KRG Ltd 

The CCI has closed a case filed by Mr. Jarnail Singh against Madhav KRG Ltd. and the Punjab Pollution Control Board, alleging a contravention of Section 4 of the Act. The CCI stated that an increased entry of players into the pollution dust market and increased prices only indicated greater competition and therefore, no breach of the provisions of the Act was established.

3. CCI closes a complaint filed against Ola, Ather and others.

The CCI has closed a complaint filed by an anonymous person against Ola Electric Ltd, Ather and others, alleging underpricing by these two-wheeler companies to avail Faster Adoption and Manufacturing of Electric Vehicles -II subsidy. The CCI, while rejecting the plea stated that no single player was able to exert market power in its favor or appear to demonstrate a position of strength to operate independently of market forces.

4. CCI clears Kerala State Road Transport Corporation (KSRTC)

The CCI has closed a complaint filed against KSRTC, alleging exclusivity granted by the Government of Kerala for operating buses on the Nilakkal Pamba route to reach Sabarimala temple along with charging of exorbitant fares from passengers on the said route. The CCI, while dismissing the plea, ruled that the exclusivity granted to KSRTC by the Government of Kerela in public interest was not anti-competitive in nature.

5. CCI to consider DGAP’s report in its final decision against Prateek Infra Projects.

The report dated February 14, 2023, following a re-investigation, confirms the allegations of profiteering by Prateek Infra Projects in the sale of flats in the ‘Prateek Edifice’ project. The DGAP’s findings upheld a profiteered amount of INR 12 crores indicating the incomplete pass-on of input tax credit (“ITC”) benefits. Despite objections, the investigation concluded that Prateek Infra Projects violated Section 171 of the CGST Act, 2017, by not passing on entire ITC benefits to the home buyers. This report will be considered by the CCI while giving its final decision.

6. Apex Court likely to hear Google’s challenge on April 30, 2024.

Previously, the CCI had imposed a fine of INR 1337.76 crores on Google, citing contravention of applicable antitrust provisions under the Act. The decision was partly confirmed by the National Company Law Appellate Tribunal (“NCLAT”); however NCLAT’s order was contested both by Google and the CCI. In this regard, the Supreme Court has stated that the hearing in Google’s challenge will commence on April 30, 2024.

7. Relief to CCI in respect of service tax demand.

The GST authorities have withdrawn a service tax demand of INR 7.08 crores on the competition watchdog. The decision was based on the determination that the regulator is not obligated to obtain service tax registration, thereby nullifying any service tax obligation.

8. CCI investigates DHL, FedEx, UPS for alleged collusion on Discounts and Tariffs. 

The CCI is currently probing the local branches of international courier companies, including Germany’s DHL, United States-based United Parcel Service and FedEx, on suspicion of colluding regarding discounts and tariff practices.

9. CCI to further investigate into Minda-Pricol merger.

The CCI has formulated a prima facie view and intents to further inquire into the proposed combination of Minda Corporation and Pricol Ltd, as it is appears to cause an ‘Appreciable Adverse Effect’ on competition for several reasons.

Regulatory Updates

1. Introduction of Interlocutory Application vide CCI (General) Amendment Regulations, 2024.

In order to amend the CCI (General) Amendment Regulations, 2019, the CCI on January 12, 2024, notified the provisions of CCI (General) Amendment Regulations, 2024, with respect to Interlocutory Application (“IA”). Significant amends include the following:

(i) Insertion of the definition of “IA”, which states:

- “An application filed before the Commission in a case instituted under section 19 of the Act, except those filed in compliance of any order or direction of the Commission.”

(ii) Revised Regulation 15 pertaining to Procedure for scrutiny of information or reference and insertion of sub-rule (6), which provides as follows:

- Every IA should be registered and numbered; all IAs should be scrutinized within 7 days; any defects in the application should be removed within 5 days of receipt of communication by the party making such IA; in case of exceeding the time limit for removing defects, the IA would be treated as invalid.

(iii) Revised Regulation 49 pertaining to Fee under clause (a) of sub-section (1) of Section 19 of the Act and insertion of provisions pertaining to IA received under regulation 15 (6), which provides:

- IA to be accompanied by proof of fee paid along with different fee structures for individuals/ HUF, Non-Government Organization/ Consumer Association/ Co-operative Society, Firms, and others.

Contributors to the newsletter:

• Abhishek Sharma, Partner
• Shorya Singhal, Associate