Finance Minister calls for swift approval of merger proposals that are ‘harmless for competition’

Finance Minister Nirmala Sitharaman on Tuesday called for swift approval in compliance with the regulatory framework for ‘harmless’ proposals from the point of view of competition. She also urged for a balance between growth and regulatory vigilance.

Addressing the 16^th Annual Day celebrations of the Competition Commission of India here, she highlighted that in today’s interconnected and fast-paced global economy, delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines, and potentially erode the intended value of transactions. “It is, therefore, imperative that regulatory frameworks, while maintaining rigorous oversight, also facilitate swift and seamless approvals for combinations that pose no harm to competition,” she said.

CCI works to promote fair competition and prevent competitive practices in the marketplace. Besides, mergers and acquisitions beyond a certain threshold need the approval of the watchdog

The Minister took note of the setting up of a ‘Green Channel mechanism’, which is a trust-based, risk-calibrated approach that allows for automated approval of combinations that are deemed to have no appreciable adverse effect on competition, in order to reduce transaction costs and timelines.

Emphasising the importance of fair competition, Sitharaman said there has to be a right balance of regulations and freedom. “The ability of the Commission to strike a balance between regulatory vigilance and a pro-growth mindset will be integral to building a resilient, equitable, and innovation-driven economic framework in India, as it aspires to become a Viksit Bharat by 2047,” she said.

Sitharaman, also the Corporate Affairs Minister, said the regulator has to anticipate changes in the market and remain relevant to the needs of the time. Highlighting the challenges, she said in addition to the traditional ones, recent years have seen the emergence of new challenges such as Artificial Intelligence. These technologies raise novel questions about market power, transparency, data access, algorithmic biases, and the scope of competitive harm.

“Free and fair digital markets are challenged by the emergence of gatekeeper platforms, asymmetries in data access, and cross-border implications of digital business models. The rise of cross-border digital monopolies demands global cooperation and agile regulation,” she said, while taking note of the establishment of the ‘Digital Markets Division.’

Calling it a timely move, she expects it to become a centre of excellence in understanding technology markets, forging inter-regulatory partnerships, and engaging in global discourse. At the same time, setting up of Regional Offices has also enhanced CCI’s accessibility and responsiveness to stakeholders across States. “As markets deepen and diversify across India, it is important that the CCI continues to be approachable and visible,” she suggested

“CCI’s role in the competition assessment of such instruments is also crucial, and continued support to policymakers in reforming laws with a competition lens would ensure efficient and level playing fields,” she said.

Published on May 20, 2025

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}