One of the most important facets of the Indian merger control regime is the element of 'control'. Control over an enterprise has the ability to change the competitive dynamics of any market, and the Competition Commissio

As per Section 5 of the Competition Act, 2002 (as amended in 2023), "Control" means the ability to exercise material influence, in any manner whatsoever, over the management or affairs or strategic commercial decisions by- one or more enterprises, either jointly or singly, over another enterprise or group; or one or more groups, either jointly or singly, over another group or enterprise; Further, "Group" means two or more enterprises where one enterprise is directly or indirectly, in a position to- exercise twenty-six per cent. or such other higher percentage as may be prescribed, of the voting rights in the other enterprise; or appoint more than fifty per cent. of the members of the board of directors in the other enterprise; or control the management or affairs of the other enterprise; De Minimis Exemption: The Central Government has granted exemption to acquisition of small targets which is known as de minimis exemption. Combinations where the assets or the turnover is below the specific thresholds need not be notified to the Commission for its approval. According to Notification, all forms of combinations involving assets of not more than ₹350 crore in India or turnover of not more than ₹1,000 crore in India, are exempt from Section 5 of the Act for a period of 5 years. The Government of India (MCA), through notification has extended the Small Target Exemption for another five years, i.e., until March 26, 2027.