COMPETITION ACT, 2002

Preamble 1 - THE COMPETITION ACT, 2002

THE COMPETITION ACT, 2002

[Act No. 12 of 2003]

[13th January, 2003]

PREAMBLE

An Act to provide, keeping in view of the economic development of the country, for the establishment
of a Commission to prevent practices having adverse effect on competition, to promote and sustain
competition in markets, to protect the interests of consumers and to ensure freedom of trade carried
on by other participants in markets, in India, and for matters connected therewith or incidental thereto.

be it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:--

Section 1 - Short title extent and commencement

(1) This Act may be called the Competition Act, 2002.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall come into force on such date1 as the Central Government may, by notification in the
Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and
any reference in any such provision to the commencement of this Act shall be construed
as a reference to the coming into force of that provision.

1. Section 1; Clauses d), (g), (j), (k), (l) and (n) of Section 2; Section 8; Section 9; Section 10; Section 14; Section

16; Section 17; sub-Section (1) of Section 63; and Clauses (a), (b), (d), (e), (f) and (g) of Sub- section (2) of sub-

section 63, brought into force on 31-3-2003 vide S.O.340(E), dated 31-3-2003, published in the Gazette of India,

Ext., pt. II, S. 3(ii), dated 31-3-2003. Section 2 except clauses (d), (g), (j), (k), (l) and (n) Section 7; Section 11;

Section 12; Section 13; Section 15; Section 22; Section 23; Section 36; Section 49; Section 50; Section 51; Section

52; Section 53; Section 54; Section 55; Section 56; Section 57; Section 58; Section 59; Section 60; Section 61;
 Section 62; Section 63; expect clauses (a), (b), (d), (e), (f) (g) and (n) of sub-section (2); Section 64; section 65;

brought into force on 19-6-2003; Section 3,4,18,19,21,26 to 28,32,33,35,38,39,41 to 43,45 to 48,54 to 56 brought

force on 20-5-2009 vide s,o 1241(e), dated 15-9-2009, Section 66 brought into force on 1-9-2009 vide S.O 2204(E),

dared 28-8-2009; section 5,6,20,29 to 31 brought into force on 1-6-2011 vide S.O 479(E), Dated 4-3-2011; Section

44 brought into force on 1-6-2011 vide S.O. 1231(E), Dated 30-5-2011.

Section 2 - Definitions

In this Act, unless the context otherwise requires,--

2(a) "acquisition" means, directly or indirectly, acquiring or agreeing to acquire--

(i) shares, voting rights or assets of any enterprise; or

(ii) control over management or control over assets of any enterprise;

2(b) "agreement" includes any arrangement or understanding or action in concert,:--

(i) whether or not, such arrangement, understanding or action is formal or in writing; or

(ii) whether or not such arrangement, understanding or action is intended to be

enforceable by legal proceedings;

3[(ba) "Appellate Tribunal" means the National Company Law Appellate Tribunal referred to in

sub-section (1) of section 53A;]

2(c) "cartel" includes an association of producers, sellers, distributors, traders or service

providers who, by agreement amongst themselves, limit, control, or attempt to control the
production, distribution, sale or price of, or, trade in goods or provision of services;

1(d) "Chairperson'' means the Chairperson of the Commission appointed under sub-section

(1)of section 8;

2(e) "Commission" means the Competition Commission of India established under sub-section

(1) of section 7;

4[(ea) "commitment" means the commitment referred to in section 48B;]

2(f) "consumer means any person who---

(i) buys any goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment and includes any user of such
goods other than the person who buys such goods for consideration paid or promised or
partly paid or partly promised, or under any system of deferred payment when such use is
made with the approval of such person, whether such purchase of goods is for resale or
for any commercial purpose or for personal use;

(ii) hires or avails of any services for a consideration which has been paid or promised or
 partly paid and partly promised, or under any system of deferred payment and includes
any beneficiary of such services other than the person who hires or avails of the services
for consideration paid or promised, or partly paid and partly promised, or under any
system of deferred payment, when such services are availed of with the approval of the
first-mentioned person whether such hiring or availing of services is for any commercial
purpose or for personal use;

1(g) "Director General" means the Director General appointed under sub-section (1) of

section 16 and includes any Additional, Joint, Deputy or Assistant Directors General appointed
under that section;

2(h) "enterprise" means 5[a person or a department of the Government, including units,

divisions, subsidiaries, who or which is, or has been, engaged in any economic activity,
relating to the production, storage, supply, distribution, acquisition or control of articles or
goods, or the provision of services, of any kind, or in investment, or in the business of
acquiring, holding, underwriting or dealing with shares, debentures or other securities of any
other body corporate, either directly or through one or more of its units or divisions or
subsidiaries, but does not include any activity of the Government relatable to the sovereign
functions of the Government including all activities carried on by the departments of the
Central Government dealing with atomic energy, currency, defence and space;]

Explanation.--For the purposes of this clause,--

(a) "activity" includes profession or occupation;

(b) "article" includes a new article and "service" includes a new service;

(c) "unit" or "division", in relation to an enterprise, includes--

(i) a plant or factory established for the production, storage, supply, distribution,
acquisition or control of any article or goods;

(ii) any branch or office established for the provision of any service;

2(i) "goods" means goods as defined in the Sale of Goods Act, 1930 (8 of 1930) and includes-

(A) products manufactured, processed or mined;

(B) debentures, stocks and shares after allotment;

(C) in relation to goods supplied, distributed or controlled in India, goods imported into
India;

1(j) "Member" means a Member of the Commission appointed under sub-section (1) of

section 8 and includes the Chairperson;

1(k) "notification" means a notification published in the Official Gazette;

4[(ka) "party" includes a consumer or an enterprise or a person or an information provider, or

a consumer association or a trade association, or the Central Government or any State

Government or any statutory authority, as the case may be, and shall include an enterprise or
a person against whom any inquiry or proceeding is instituted; and any enterprise or person
impleaded by the Commission to join the proceedings;]

1(l) "person" includes--

(i) an individual;

(ii) a Hindu undivided family;

(iii) a company;

(iv) a firm;

(v) an association of persons or a body of individuals, whether incorporated or not, in

India or outside India;

(vi) any corporation established by or under any Central, State or Provincial Act or a
Government company as defined in 6[clause (45) of section 2 of the Companies Act, 2013
(18 of 2013)];

(vii) any body corporate incorporated by or under the laws of a country outside India;

(viii) a co-operative society registered under any law relating to cooperative societies;

(ix) a local authority;

(x) every artificial juridical person, not falling within any of the preceding sub-clauses;

2(m) "practice" includes any practice relating to the carrying on of any trade by a person or

an enterprise;

1(n) "prescribed" means prescribed by rules made under this Act;

2(o) "price", in relation to the sale of any goods or to the performance of any services,

includes every valuable consideration, whether direct or indirect, or deferred, and includes
any consideration which in effect relates to the sale of any goods or to the performance of
any services although ostensibly relating to any other matter or thing;

7[(p) "public financial institution" means public financial institution as defined in clause (72) of
section 2 of the Companies Act, 2013 (18 of 2013) and includes a State Financial Corporation,
State Industrial Corporation or State Investment Corporation;]

2(q) "regulations" means the regulations made by the Commission under section 64;

2(r) "relevant market" means the market which may be determined by the Commission with

reference to the relevant product market or the relevant geographic market or with reference
to both the markets;

2(s) "relevant geographic market" means a market comprising the area in which the

conditions of competition for supply of goods or provision of services or demand of goods or

 services, are distinctly homogenous and can be distinguished from the conditions prevailing in
the neighbouring areas;

8['(t) "relevant product market" means a market comprising of all those products or services-

(i) which are regarded as inter-changeable or substitutable by the consumer, by reason of

characteristics of the products or services, their prices and intended use; or

(ii) the production or supply of, which are regarded as interchangeable or substitutable by
the supplier, by reason of the ease of switching production between such products and
services and marketing them in the short term without incurring significant additional
costs or risks in response to small and permanent changes in relative prices;]

2(u) "service" means service of any description which is made available to potential users and

includes the provision of services in connection with business of any industrial or commercial
matters such as banking, communication, education, financing, insurance, chit funds, real
estate, transport, storage, material treatment, processing, supply of electrical or other
energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of
news or information and advertising;

4[(ua) "settlement" means the settlement referred to in section 48A;]

2(v) "shares" means shares in the share capital of a company carrying voting rights and

includes--

(i) any security which entitles the holder to receive shares with voting rights;

(ii) stock except where a distinction between stock and share is expressed or implied;

2(w) "statutory authority" means any authority, board, corporation, council, institute,

university or any other body corporate, established by or under any Central, State or
Provincial Act for the purposes of regulating production or supply of goods or provision of any
services or markets therefore or any matter connected therewith or incidental thereto;

2 (x) "trade'' means any trade, business, industry, profession or occupation relating to the

production, supply, distribution, storage or control of goods and includes the provision of any
services;

2 (y) "turnover" includes value of sale of goods or services;

2 (z) words and expressions used but not defined in this Act and defined in 9[the Companies

Act, 2013 (18 of 2013)] shall have the same meanings respectively assigned to them in that
Act.

______________________
 1. Effective from 31.03.2003 by Notification No. 340 (E) Dated 31.03.2003.

2. Effective from 19.06.2003 by Notification No. SO 715 (E) Dated 19.06.2003.

3. Substituted by Act 7 of 2017, S.171, (a), for Cl. (ba) (w.e.f 26-5-2017). prior to its substitution, Cl. (ba) read as under:-

"[(ba) "Appellate Tribunal" means the Competition Appellate Tribunal established under sub-section (1) of section 53A.;"

4. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

5. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"a person or a department of the Government, who or which is, or has been, engaged in any activity, relating to the

production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any

kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other

securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries,

whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different

place or at different places, but does not include any activity of the Government relatable to the sovereign functions of

the Government including all activities carried on by the departments of the Central Government dealing with atomic

energy, currency, defence and space."

6. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"section 617 of the Companies Act, 1956 (1 of 1956)"

7. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"2(p) "public financial institution" means a public financial institution specified under section 4A of the Companies Act,

1956 (1 of 1956) and includes a State Financial, Industrial or Investment Corporation;"

8. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"2(t) "relevant product market" means a market comprising all those products or services which are regarded as

interchangeable or substitutable by the consumer, by reason of characteristics of the products or services, their prices

and intended use;"

9. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"the Companies Act, 1956 (1 of 1956)"

Section 3 - Prohibition of agreements: Anti competitive agreements

1[(1) No enterprise or association of enterprises or person or association of persons shall enter
into any agreement in respect of production, supply, distribution, storage, acquisition or control
of goods or provision of services, which causes or is likely to cause an appreciable adverse effect
on competition within India.

(2) Any agreement entered into in contravention of the provisions contained in subsection (7)
shall be void.

(3) Any agreement entered into between enterprises or associations of enterprises or persons or
associations of persons or between any person and enterprise or practice carried on, or decision
taken by, any association of enterprises or association of persons, including cartels, engaged in
identical or similar trade of goods or provision of services, which--

(a) directly or indirectly determines purchase or sale prices;

(b) limits or controls production, supply, markets, technical development, investment or

provision of services;

(c) shares the market or source of production or provision of services by way of allocation of
geographical area of market, or type of goods or services, or number of customers in the
market or any other similar way;

(d) directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have
an appreciable adverse effect on competition:

Provided that nothing contained in this sub-section shall apply to any agreement entered
into by way of joint ventures if such agreement increases efficiency in production,
supply, distribution, storage, acquisition or control of goods or provision of services.

2[Provided further that an enterprise or association of enterprises or a person or

association of persons though not engaged in identical or similar trade shall also be
presumed to be part of the agreement under this sub-section if it participates or intends
to participate in the furtherance of such agreement.]

Explanation.--For the purposes of this sub-section," bid rigging" means any

agreement, between enterprises or persons referred to in sub-section (3)
engaged in identical or similar production or trading of goods or provision of
services, which has the effect of eliminating or reducing competition for bids or
adversely affecting or manipulating the process for bidding.

(4) 3[Any other agreement amongst enterprises or persons including but not restricted to
agreement amongst enterprises or persons] at different stages or levels of the production chain
in different markets, in respect of production, supply, distribution, storage, sale or price of, or
trade in goods or provision of services, including ---

(a) tie-in arrangement;

(b) exclusive 4[dealing] agreement;

(c) exclusive distribution agreement;

(d) refusal to deal;

(e) resale price maintenance,

shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely

to cause an appreciable adverse effect on competition in India.

5[Provided that nothing contained in this sub-section shall apply to an agreement

entered into between an enterprise and an end consumer.]

Explanation.--For the purposes of this sub-section,-

6['(a) "tie-in arrangement" includes any agreement requiring a purchaser

of goods or services, as a condition of such purchase, to purchase some
other distinct goods or services;

(b) "exclusive dealing agreement" includes any agreement restricting in

any manner the purchaser or the seller, as the case may be, in the course
of his trade from acquiring or selling or otherwise dealing in any goods or
services other than those of the seller or the purchaser or any other
person, as the case may be;]

(c) "exclusive distribution agreement" includes any agreement to limit,

restrict or withhold the output or supply of any 7[goods] or allocate any

area or market for the disposal or sale of the 7[goods];

(d) "refusal to deal" includes any agreement which restricts, or is likely to

restrict, by any method the persons or classes of persons to whom
7[goods] are sold or from whom 7[goods] are bought;

(e) "resale price maintenance" 8[includes, in case of any agreement to sell

goods or provide services, any direct or indirect restriction] that the prices
to be charged on the resale by the purchaser shall be the prices stipulated
by the seller unless it is clearly stated that prices lower than those prices
may be charged.
 (5) Nothing contained in this section shall restrict--

(i) the right of any person to restrain any infringement of, or to impose reasonable
conditions, as may be necessary for protecting any of his rights which have been or may be
conferred upon him under--

(a) the Copyright Act, 1957 (14 of 1957);

(b) the Patents Act, 1970 (39 of 1970);

(c) the Trade and Merchandise Marks Act, 1958 (43 of 1958) or the Trade Marks Act,
1999 (47 of 1999);

(d) the Geographical Indications of Goods (Registration and Protection) Act, 1999(48 of
1999),

(e) the Designs Act, 2000 (16 of 2000);

(f) the Semi-conductor Integrated Circuits Layout-Design Act, 2000 (37 of 2000);

2[(g) any other law for the time being in force relating to the protection of other
intellectual property rights.]

(ii) the right of any person to export goods from India to the extent to which the agreement
relates exclusively to the production, supply, distribution or control of goods or provision of
services for such export.]

_________________________

1. Effective date: 20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

2. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"Any agreement amongst enterprises or persons"

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"supply"

5. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

6. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

 "(a) "tie-in arrangement" includes any agreement requiring a purchaser of goods, as a condition of such purchase, to

purchase some other goods;

(b) "exclusive supply agreement" includes any agreement restricting in any manner the purchaser in the course of his

trade from acquiring or otherwise dealing in any goods other than those of the seller or any other person;"

7. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"goods"

8. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"includes any agreement to sell goods on condition"

Section 4 - Prohibition of abuse of dominant position: Abuse of dominant position

4[1[(1) No enterprise or group shall abuse its dominant position.]

(2) There shall be an abuse of dominant position 2[under sub-section (1), if an enterprise or a
group],---

(a) directly or indirectly, imposes unfair or discriminatory--

(i) condition in purchase or sale of goods or service; or

(ii) price in purchase or sale (including predatory price) of goods or service.

Explanation.--For the purposes of this clause, the unfair or discriminatory condition in

purchase or sale of goods or service referred to in sub-clause (i) and unfair or
discriminatory price in purchase or sale of goods (including predatory price) or

service referred to in sub-clause (ii) shall not include such 5[condition or price] which
may be adopted to meet the competition; or

(b) limits or restricts--

(i) production of goods or provision of services or market therefore; or

(ii) technical or scientific development relating to goods or services to the prejudice of

consumers; or

(c) indulges in practice or practices resulting in denial of market access 3[in any manner]; or

(d) makes conclusion of contracts subject to acceptance by other parties of supplementary

 obligations which, by their nature or according to commercial usage, have no connection
with the subject of such contracts; or

(e) uses its dominant position in one relevant market to enter into, or protect, other relevant
market.

Explanation.--For the purposes of this section, the expression--

(a) "dominant position" means a position of strength, enjoyed by an enterprise, in the

relevant market, in India, which enables it to--

(i) operate independently of competitive forces prevailing in the relevant market; or

(ii) affect its competitors or consumers or the relevant market in its favour;

(b) "predatory price" means the sale of goods or provision of services, at a price which is
below the cost, as may be determined by regulations, of production of the goods or
provision of services, with a view to reduce competition or eliminate the competitors.

3[(c) "group" shall have the same meaning as assigned to it in clause (b) of the Explanation
to section 5.]]

___________________________________________

1. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007].

"(1) No enterprise shall abuse its dominant position."

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007], Section 3, (W.e.f. 20.05.2009) for the

words, brackets and figure "under sub-section (1), if an enterprise".

3. Inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007], Section 3 (W.e.f. 20.05.2009).

4. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

5. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"discriminatory condition or price"

Section 5 - Combination

Regulation of combinations

5. Combination.--

The acquisition of one or more enterprises by one or more persons or merger or amalgamation
of enterprises shall be a combination of such enterprises and persons or enterprises, if--

(a) any acquisition where--

(i) the parties to the acquisition, being the acquirer and the enterprise, whose control
shares, voting rights or assets have been acquired or are being acquired jointly have,--

(A) either, in India, the assets of the value of more than rupees one thousand crores
or turnover more than rupees three thousand crores; or

1[(B) in India or outside India, in aggregate, the assets of the value of more than five
hundred million US dollars, including at least rupees five hundred crores in India, or
turnover more than fifteen hundred million US dollars, including at least rupees
fifteen hundred crores in India; or]

(ii) the group, to which the enterprise whose control, shares, assets or voting rights have
been acquired or are being acquired, would belong after the acquisition, jointly have or
would jointly have,--

(A) either in India, the assets of the value of more than rupees four thousand crores
or turnover more than rupees twelve thousand crores; or

2[(B) in India or outside India, in aggregate, the assets of the value of more than two
billion US dollars, including at least rupees five hundred crores in India, or turnover
more than six billion US dollars, including at least rupees fifteen hundred crores in
India; or;]

(b) acquiring of control by a person over an enterprise when such person has already direct
or indirect control over another enterprise engaged in production, distribution or trading of a
similar or identical or substitutable goods or provision of a similar or identical or
substitutable service, if--

(i) the enterprise over which control has been acquired along with the enterprise over
which the acquirer already has direct or indirect control jointly have,--

(A) either in India, the assets of the value of more than rupees one thousand crores
or turnover more than rupees three thousand crores; or

3[(B) in India or outside India, in aggregate, the assets of the value of more than five
hundred million US dollars, including at least rupees five hundred crores in India, or
turnover more than fifteen hundred million US dollars, including at least rupees
fifteen hundred crores in India; or;]

(ii) the group, to which enterprise whose control has been acquired, or is being acquired,
 would belong after the acquisition, jointly have or would jointly have,--

(A) either in India, the assets of the value of more than rupees four thousand crores
or turnover more than rupees twelve thousand crores; or

4[(B) in India or outside India, in aggregate, the assets of the value of more than two
billion US dollars, including at least rupees five hundred crores in India, or turnover
more than six billion US dollars, including at least rupees fifteen hundred crores in
India; or;]

(c) any merger or amalgamation in which--

(i) the enterprise remaining after merger or the enterprise created as a result of the
amalgamation, as the case may be, have,--

(A) either in India, the assets of the value of more than rupees one thousand crores
or turnover more than rupees three thousand crores; or

5[(B) in India or outside India, in aggregate, the assets of the value of more than five
hundred million US dollars, including at least rupees five hundred crores in India, or
turnover more than fifteen hundred million US dollars, including at least rupees
fifteen hundred crores in India; or;]

(ii) the group, to which the enterprise remaining after the merger or the enterprise
created as a result of the amalgamation, would belong after the merger or the
amalgamation, as the case may be, have or would have,--

(A) either in India, the assets of the value of more than rupees four thousand crores
or turnover more than rupees twelve thousand crores; or

6[(B) in India or outside India, in aggregate, the assets of the value of more than two
billion US dollars, including at least rupees five hundred crores in India, or turnover
more than six billion US dollars, including at least rupees fifteen hundred crores in
8[India; or]]

9[Explanation.- For the purposes of this section,--

(a) "control" means the ability to exercise material influence, in any

manner whatsoever, over the management or affairs or strategic
commercial decisions by--

(i) one or more enterprises, either jointly or singly, over another

enterprise or group; or
 (ii) one or more groups, either jointly or singly, over another group
or enterprise;

(b) "group" means two or more enterprises where one enterprise is

directly or indirectly, in a position to--

(i) exercise twenty-six per cent. or such other higher percentage

as may be prescribed, of the voting rights in the other enterprise;
or

(ii) appoint more than fifty per cent. of the members of the board
of directors in the other enterprise; or

(iii) control the management or affairs of the other enterprise;

(c) "turnover" means the turnover certified by the statutory auditor on the
basis of the last available audited accounts of the company in the financial
year immediately preceding the financial year in which the notice is filed
under sub-section (2) or sub-section (4) of section 6 and such turnover in
India shall be determined by excluding intra-group sales, indirect taxes,
trade discounts and all amounts generated through assets or business
from customers outside India, as certified by the statutory auditor on the
basis of the last available audited accounts of the company in the financial
year immediately preceding the financial year in which the notice is filed
under sub-section (2) or sub-section (4) of section 6;

(d) "value of transaction" includes every valuable consideration, whether

direct or indirect, or deferred for any acquisition, merger or
amalgamation;

(e) the value of assets shall be determined by taking the book value of the
assets as shown, in the audited books of account of the enterprise, in the
financial year immediately preceding the financial year in which the date
of proposed combination falls and if such financial statement has not yet
become due to be filed with the Registrar under the Companies Act, 2013
(18 of 2013), then as per the statutory auditor's report made on the basis
of the last available audited accounts of the company in the financial year
immediately preceding the financial year in which the notice is filed under
sub-section (2) or sub-section (4) of section 6, as reduced by any
depreciation, and the value of assets shall include the brand value, value
of goodwill, or value of copyright, patent, permitted use, collective mark,
registered proprietor, registered trade mark, registered user, homonymous
 geographical indication, geographical indications, design or layout-design
or similar other commercial rights under the laws provided in sub-section
(5) of section 3;

(f) where a portion of an enterprise or division or business is being

acquired, taken control of, merged or amalgamated with another
enterprise, the value of assets or turnover or value of transaction as may
be applicable, of the said portion or division or business or attributable to
it, shall be the relevant assets or turnover or relevant value of transaction
for the purpose of applicability of the thresholds under section 5.]

7[(d) value of any transaction, in connection with acquisition of any control, shares, voting
rights or assets of an enterprise, merger or amalgamation exceeds rupees two thousand
crore:

Provided that the enterprise which is being acquired, taken control of, merged or
amalgamated has such substantial business operations in India as may be specified by
regulations.

(e) notwithstanding anything contained in clause (a) or clause (b) or clause (c), where either
the value of assets or turnover of the enterprise being acquired, taken control of, merged or
amalgamated in India is not more than such value as may be prescribed, such acquisition,
control, merger or amalgamation, shall not constitute a combination under section 5.]

___________________________________

1. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] section 4, for item (B)

(w.e.f. 1-6-2011).

"(B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars or

turnover more than fifteen hundred million US dollars; or"

2. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] section 4, for item (B)

(w.e.f. 1-6-2011).

"(B) in India or outside India, in aggregate, the assets of the value of more than two billion US dollars or turnover more

than six billion US dollars; or"

3. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] section 4, for item (B)

(w.e.f. 1-6-2011).

"(B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars or

turnover more than fifteen hundred million US dollars; or"

4. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] section 4, for item (B)

(w.e.f. 1-6-2011).

"(B) in India or outside India, in aggregate, the assets of the value of more than two billion US dollars or turnover more

than six billion US dollars; or"

5. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] section 4, for item (B)

(w.e.f. 1-6-2011).

"(B) in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars or

turnover more than fifteen hundred million US dollars; or"

6. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] section 4, for item (B)

(w.e.f. 1-6-2011).

"(B) in India or outside India, the assets of the value of more than two billion US dollars or turnover more than six

billion US dollars."

7. Inserted by Competition (Amendment) Act, 2023.

8. Substituted by Competition (Amendment) Act, 2023, for the following:-

"India."

9. Substituted by Competition (Amendment) Act, 2023, for the following:-

"Explanation.--For the purposes of this section,--

(a) "control" includes controlling the affairs or management by--

(i) one or more enterprises, either jointly or singly, over another enterprise or group;

(ii) one or more groups, either jointly or singly, over another group or enterprise:

(b) "group" means two or more enterprises which, directly or indirectly, are in a position to ---

(i) exercise twenty-six per cent. or more of the voting rights in the other enterprise; or

(ii) appoint more than fifty per cent, of the members of the board of directors in the other enterprise: or

(iii) control the management or affairs of the other enterprise;

(c) the value of assets shall be determined by taking the book value of the assets as shown, in the audited books of

account of the enterprise, in the financial year immediately preceding the financial year in which the date of

proposed merger falls, as reduced by any depreciation, and the value of assets shall include the brand value, value

of goodwill, or value of copyright, patent, permitted use, collective mark, registered proprietor, registered trade

mark, registered user, homonymous geographical indication, geographical indications, design or layout-design or
 similar other commercial rights, if any, referred to in sub-section (5) of section 3."

Section 6 - Regulation of combinations

6. Regulation of Combinations

(1) No person or enterprise shall enter into a combination which causes or is likely to cause an
appreciable adverse effect on competition within the relevant market in India and such a
combination shall be void.

(2) Subject to the provisions contained in sub-section (1), any person or enterprise, who or

which proposes to enter into a combination, 1[shall], give notice to the Commission, in the form
as may be specified, and the fee which may be determined, by regulations, disclosing the details

of the proposed combination, 4[after any of the following, but before consummation of the
combination]--

(a) approval of the proposal relating to merger or amalgamation, referred to in clause (c)
5[and clause (d)] of section 5, by the board of directors of the enterprises concerned with
such merger or amalgamation, as the case may be;

(b) execution of any agreement or other document for acquisition referred to in clause (a)
5[and clause (d)] of section 5 or acquiring of control referred to in clause (b) of that section.

5[Explanation.- For the purposes of this sub-section, "other document" means any
document, by whatever name called, conveying an agreement or decision to acquire
control, shares, voting rights or assets or if the acquisition is without the consent of the
enterprise being acquired, any document executed by the acquiring enterprise, by
whatever name called, conveying a decision to acquire control, shares or voting rights or
where a public announcement has been made in accordance with the provisions of the
Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011 made under the Securities and Exchange Board of India
Act, 1992 (15 of 1992) for acquisition of shares, voting rights or control such public
document.]

3[(2A) No combination shall come into effect until 6[one hundred and fifty days] have passed
from the day on which the notice has been given to the Commission under sub-section (2) or
the Commission has passed orders under section 31, whichever is earlier.]

(3) The Commission shall, after receipt of notice under sub-section (2), deal with such notice in

accordance with the provisions contained in 6[sections 29, 29A, 30 and 31].

7[(4) Notwithstanding anything contained in sub-sections (2A) and (3) and section 43A, if a
combination fulfils such criteria as may be prescribed and is not otherwise exempted under this
Act from the requirement to give notice to the Commission under sub-section (2), then notice
for such combination may be given to the Commission in such form and on payment of such fee
as may be specified by regulations, disclosing the details of the proposed combination and
thereupon a separate notice under sub-section (2) shall not be required to be given for such
combination.

(5) Upon filing of a notice under sub-section (4) and acknowledgement thereof by the
Commission, the proposed combination shall be deemed to have been approved by the
Commission under sub-section (1) of section 31 and no other approval shall be required under
sub-section (2) or sub-section (2A).

(6) If within the period referred to in sub-section (1) of section 20, the Commission finds that
the combination notified under sub-section (4) does not fulfil the requirements specified under
that sub-section or the information or declarations provided are materially incorrect or
incomplete, the approval under sub-section (5) shall be void ab initio and the Commission may
pass such order as it may deem fit:

Provided that no such order shall be passed unless the parties to the combination have
been given an opportunity of being heard.

(7) Notwithstanding anything contained in this section and section 43A, upon fulfilment of such
criteria as may be prescribed, certain categories of combinations shall be exempted from the
requirement to comply with sub-sections (2), (2A) and (4).

(8) Notwithstanding anything contained in sub-sections (4), (5), (6) and (7)--

(i) the rules and regulations made under this Act on the matters referred to in these sub-
sections as they stood immediately before the commencement of the Competition
(Amendment) Act, 2023 and in force at such commencement, shall continue to be in
force, till such time as the rules or regulations, as the case may be, made under this Act;
and

(ii) any order passed or any fee imposed or combination consummated or resolution
passed or direction given or instrument executed or issued or thing done under or in
pursuance of any rules and regulations made under this Act shall, if in force at the
commencement of the Competition (Amendment) Act, 2023, continue to be in force, and
shall have effect as if such order passed or such fee imposed or such combination
consummated or such resolution passed or such direction given or such instrument
executed or issued or done under or in pursuance of this Act.

(9) The provisions of this section shall not apply to share subscription or financing facility or any
acquisition, by a public financial institution, foreign portfolio investor, bank or Category I
 alternative investment fund, pursuant to any covenant of a loan agreement or investment
agreement.

Explanation.- For the purposes of this section, the expression--

(a) "Category I alternative investment fund" has the same meaning as assigned
to it under the Securities and Exchange Board of India (Alternative Investment
Funds) Regulations, 2012 made under the Securities and Exchange Board of India
Act, 1992 (15 of 1992);

(b) "foreign portfolio investor" has the same meaning as assigned to it under the
Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations,
2019 made under the Securities and Exchange Board of India Act, 1992 (15 of
1992).]

________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words "may, at his or its option,"

(w.e.f. 1-6-2011).

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words "seven days" (w.e.f. 1-6-

2011).

3. Inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] (w.e.f. 1-6-2011).

4. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within 2[thirty days] of"

5. Substituted by Competition (Amendment) Act, 2023, for the following:-

"two hundred and ten days"

6. Substituted by Competition (Amendment) Act, 2023, for the following:-

"sections 29, 30 and 31"

7. Substituted by Competition (Amendment) Act, 2023, for the following:-

"(4) The provisions of this section shall not apply to share subscription or financing facility or any acquisition, by a public

financial institution, foreign institutional investor, bank or venture capital fund, pursuant to any covenant of a loan

agreement or investment agreement.

(5) The public financial institution, foreign institutional investor, bank or venture capital fund, referred to in sub-section

(4), shall, within seven days from the date of the acquisition, file, in the form as may be specified by regulations, with

the Commission the details of the acquisition including the details of control, the circumstances for exercise of such
 control and the consequences of default arising out of such loan agreement or investment agreement, as the case may

be.

Explanation.-- For the purposes of this section, the expression--

(a) "foreign institutional investor" has the same meaning as assigned to it in clause (a) of the Explanation to

section 115AD of the Income-tax Act, 1961 (43 of 1961);

(b) "venture capital fund" has the same meaning as assigned to it in clause (b) of the Explanation to clause

(23FB) of section 10 of the Income-tax Act, 1961 (43 of 1961)."

Section 6A - Open offers, etc.

1[6A. Open offers, etc.

Nothing contained in sub-section (2A) of section 6 and section 43A shall prevent the
implementation of an open offer or an acquisition of shares or securities convertible into other
securities from various sellers, through a series of transactions on a regulated stock exchange
from coming into effect, if--

(a) the notice of the acquisition is filed with the Commission within such time and in such
manner as may be specified by regulations; and

(b) the acquirer does not exercise any ownership or beneficial rights or interest in such
shares or convertible securities including voting rights and receipt of dividends or any
other distributions, except as may be specified by regulations, till the Commission
approves such acquisition in accordance with the provisions of sub-section (2A) of
section 6 of the Act.

Explanation.- For the purposes of this section, "open offer" means an open offer
made in accordance with the Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulation, 2011 made under the Securities
and Exchange Board of India Act, 1992 (15 of 1992).]

1. Inserted by Competition (Amendment) Act, 2023.

Section 7 - Establishment of Commission

17. Establishment of Commission.--

(1) With effect from such date as the Central Government may, by notification, appoint, there
shall be established, for the purposes of this Act, a Commission to be called the "Competition
Commission of India".
 (2) The Commission shall be a body corporate by the name aforesaid having perpetual
succession and a common seal with power, subject to the provisions of this Act, to acquire, hold
and dispose of property, both movable and immovable, and to contract and shall, by the said
name, sue or be sued.

(3) The head office of the Commission shall be at such place as the Central Government may
decide from time to time.

(4) The Commission may establish offices at other places in India.

___________________________________

1. Effective from 19.06.2003 by Notification No. SO 715 (E) Dated 19.06.2003.

Section 8 - Composition of Commission

2[8. Composition of Commission

(1) The Commission shall consist of a Chairperson and not less than two and not more than six
other Members to be appointed by the Central Government.

(2) The Chairperson and every other Member shall be a person of ability, integrity and standing
and who has special knowledge of, and such professional experience of not less than fifteen
years in, international trade, economics, business, commerce, law, finance, accountancy,

management, industry, 3[technology,] public affairs or competition matters, including

competition law and policy, which in the opinion of the Central Government, may be useful to
the Commission.

(3) The Chairperson and other Members shall be whole-time Members.]

__________________________

1. Effective from 31.03.2003 by Notification No. 340 (E) Dated 31.03.2003

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to substitution it

read as:

"18. Composition of Commission.--

(1) The Commission shall consist of a Chairperson and not less than two and not more than ten other Members to

be appointed by the Central Government:

Provided that the Central Government shall appoint the Chairperson and a Member during the first year of the

establishment of the Commission.

 (2) The Chairperson and every other Member shall be a person of ability, integrity and standing and who, has been,

or is qualified to be, a judge of a High Court, or, has special knowledge of, and professional experience of not less

than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management,

industry, public affairs, administration or in any other matter which, in the opinion of the Central Government, may

be useful to the Commission.

(3) The Chairperson and other Members shall be whole-time Members."

3. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

Section 9 - Selection Committee for Chairperson and Members of Commission

2[9. Selection Committee for Chairperson and Members of Commission--

(1) The Chairperson and other Members of the Commission shall be appointed by the Central
Government from a panel of names recommended by a Selection Committee consisting of--

(a) the Chief Justice of India or his nominee............Chairperson;

(b) the Secretary in the Ministry of Corporate Affairs.............Member;

(c) the Secretary in the Ministry of Law and Justice...............Member;

(d) two experts of repute who have special knowledge of, and professional experience in
international trade, economics, business, commerce, law, finance, accountancy,

management, industry, 3[technology,] public affairs or competition matters including

competition law and policy......................................................Members.

(2) The term of the Selection Committee and the manner of selection of panel of names shall be
such as may be prescribed.]

_____________________________

1. Effective from 31.03.2003 by Notification No. 340 (E) Dated 31.03.2003

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 0f 2007] w.e.f. 12.10.2007. Prior to substitution it

read as:

"19. Selection of Chairperson and other Members.--

"The Chairperson and other Members shall be selected in the manner as may be prescribed."

3. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

Section 10 - Term of office of Chairperson and other Members

110. Term of office of Chairperson and other Members.--

(1) The Chairperson and every other Member shall hold office as such for a term of five years
from the date on which he enters upon his office and shall be eligible for reappointment:

2[Provided that the Chairperson or other Members shall not hold office as such after he has
attained the age of sixty-five years.]

(2) A vacancy caused by the resignation or removal of the Chairperson or any other Member
under section 11 or by death or otherwise shall be filled by fresh appointment in accordance
with the provisions of sections 8 and 9.

(3) The Chairperson and every other Member shall, before entering upon his office, make and
subscribe to an oath of office and of secrecy in such form, manner and before such authority, as
may be prescribed.

(4) In the event of the occurrence of a vacancy in the office of the Chairperson by reason of his
death, resignation or otherwise, the senior-most Member shall act as the Chairperson, until the
date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill
such vacancy, enters upon his office.

(5) When the Chairperson is unable to discharge his functions owing to absence, illness or any
other cause, the senior-most Member shall discharge the functions of the Chairperson until the
date on which the Chairperson resumes the charge of his functions.

_____________________________

1. Effective from 31.03.2003 by Notification No. 340 (E) Dated 31.03.2003

2. Proviso substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to

substitution the text was as follows;

"Provided that no Chairperson or other Member shall hold office as such after he has attained,--

(a) in the case of the Chairperson, the age of sixty-seven years;

(b) in the case of any other Member, the age of sixty-five years."

Section 11 - Resignation, removal and suspension of Chairperson and other Members

111. Resignation, removal and suspension of Chairperson and other Members.--

(1) The Chairperson or any other Member may, by notice in writing under his hand addressed to
the Central Government, resign his office:
 Provided that the Chairperson or a Member shall, unless he is permitted by the Central
Government to relinquish his office sooner, continue to hold office until the expiry of three
months from the date of receipt of such notice or until a person duly appointed as his
successor enters upon his office or until the expiry of his term of office, whichever is the
earliest.

(2) Notwithstanding anything contained in sub-section (1), the Central Government may, by
order, remove the Chairperson or any other Member from his office if such Chairperson or
Member, as the case may be,--

(a) is, or at any time has been, adjudged as an insolvent; or

(b) has engaged at any time, during his term of office, in any paid employment; or

(c) has been convicted of an offence which, in the opinion of the Central Government,
involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his
functions as a Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public
interest; or

(f) has become physically or mentally incapable of acting as a Member.

(3) Notwithstanding anything contained in sub-section (2),no Member shall be removed from his
office on the ground specified in clause(d) or clause (e) of that subsection unless the Supreme
Court, on a reference being made to it in this behalf by the Central Government, has, on an
inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the
Supreme Court, reported that the Member, ought on such ground or grounds to be removed.

____________________________

1. Effective from 19.06.2003 by Notification No. SO 715(E) Dated 19.06.2003.

Section 12 - Restriction on employment of Chairperson and other Members

3[12. Restriction on employment of Chairperson and other Members

(1) The Chairperson and other Members shall, for a period of two years from the date on which
they cease to hold office, not accept any employment in or advise as a consultant, retainer or in
any other capacity whatsoever, or be connected with the management or administration of--

(a) any enterprise which is or has been a party to a proceeding before the Commission
under this Act; or
 (b) any person who appears or has appeared before the Commission under section 35.

(2) Notwithstanding anything contained in section 35, the Chairperson or any other Member
after retirement or otherwise ceasing to be in service for any reason shall not represent for any
person or enterprise before the Commission:

Provided that nothing contained in this section shall apply to any employment under the
Central Government or a State Government or local authority or in any statutory
authority or any corporation established by or under any Central, State or Provincial Act
or a Government company as defined in clause (45) of section 2 of the Companies Act,
2013 (18 of 2013).]

___________________________

1. Effective from 19.06.2003 by Notification No. SO 715(E) Dated 19.06.2003.

2. Substituted by the Competition (Amendment) Act 2007 [Act No. 39 of 2007] for the words "one year", w.e.f. 12.10.2007.

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"112. Restriction on employment of Chairperson and other Members in certain cases

The Chairperson and other Members shall not, for a period of 2[two years] from the date on which they cease to

hold office, accept any employment in, or connected with the management or administration of, any enterprise

which has been a party to a proceeding before the Commission under this Act:

Provided that nothing contained in this section shall apply to any employment under the Central Government or

a State Government or local authority or in any statutory authority or any corporation established by or under

any Central, State or Provincial Act or a Government company as defined in section 617 of 4[the Companies

Act, 2013 (18 of 2013)]."

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"the Companies Act, 1956 (1 of 1956)"

Section 13 - Administrative powers of Chairpersons

2[13. Administrative powers of Chairpersons.--

The Chairperson shall have the powers of general superintendence, direction and control in
respect of all administrative matters of the Commission:

Provided that the Chairperson may delegate such of his powers relating to administrative
 matters of the Commission, as he may think fit, to any other Member or officer of the
Commission.]

____________________________

1. Effective from 19.06.2003 by Notification No. SO 715(E) Dated 19.06.2003.

2. Substituted by the Competition (Amendment) Act 2007 [Act No. 39 of 2007]. Prior to substitution it read as:

"113. Financial and administrative powers of Member Administration.--

The Central Government shall designate any Member as Member Administration who shall exercise such financial

and administrative powers as may be vested in him under the rules made by the Central Government:

Provided that the Member Administration shall have authority to delegate such of his financial and

administrative powers as he may think fit to any other officer of the Commission subject to the condition that

such officer shall, while exercising such delegated powers continue to act under the direction, superintendence

and control of the Member Administration."

Section 14 - Salary and allowances and other terms and conditions of service of Chairperson
and other Members

114. Salary and allowances and other terms and conditions of service of Chairperson and
other Members.--

(1) The salary, and the other terms and conditions of service, of the Chairperson and other
Members, including travelling expenses, house rent allowance and conveyance facilities,
sumptuary allowance and medical facilities shall be such as may be prescribed.

(2) The salary, allowances and other terms and conditions of service of the Chairperson or a
Member shall not be varied to his disadvantage after appointment.

____________________________

1. Effective from 31.03.2003 by Notification No. 340 (E) Dated 31.03.2003

Section 15 - Vacancy, etc., not to invalidate proceedings of Commission

1 15. Vacancy, etc., not to invalidate proceedings of Commission.--

No act or proceeding of the Commission shall be invalid merely by reason of--

(a) any vacancy in, or any defect in the constitution of, the Commission; or

(b) any defect in the appointment of a person acting as a Chairperson or as a Member; or

(c) any irregularity in the procedure of the Commission not affecting the merits of the
 case.

_____________________________

1. Effective from 19.06.2003 by Notification No. SO 715(E) Dated 19.06.2003.

Section 16 - Appointment of Director-General, etc.

16. Appointment of Director-General, etc.

1[(1) The 3[Commission may, with the prior approval of the Central Government], appoint a
Director General for the purposes of assisting the Commission in conducting inquiry into
contravention of any of the provisions of this Act and for performing such other functions as are,
or may be, provided by or under this Act.

(1A) The number of other Additional, Joint, Deputy or Assistant Directors General or such
officers or other employees in the office of Director General and the manner of appointment of
such Additional, Joint, Deputy or Assistant Directors General or such officers or other employees
shall be such as may be prescribed.]

(2) Every Additional, Joint, Deputy and Assistant Directors General or 2[such officers or other
employees,] shall exercise his powers, and discharge his functions, subject to the general
control, supervision and direction of the Director General.

(3) The salary, allowances and other terms and conditions of service of the Director General and

Additional, Joint, Deputy and Assistant Directors General or 2[such officers or other employees,]
shall be such as may be prescribed.

(4) The Director General and Additional, Joint, Deputy and Assistant Directors General or 2[such
officers or other employees,] shall be appointed from amongst persons of integrity and
outstanding ability and who have experience in investigation, and knowledge of accountancy,
management, business, public administration, international trade, law or economics and such
other qualifications as may be prescribed.

_____________________________

1. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007.

"(1) The Central Government may, by notification, appoint a Director General and as many Additional, Joint, Deputy or

Assistant Directors General or such other advisers, consultants or officers, as it may think fit for the purposes of

assisting the Commission in conducting inquiry into contravention of any of the provisions of this Act and for the conduct

of cases before the Commission and for performing such other functions as are, or maybe, provided by or under this

Act."

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words "such other advisers,
 consultants and officers,", w.e.f. 12.10.2007.

3. Substituted by Competition (Amendment) Act, 2023, w.e.f. 18.07.2023, vide Notification No. SO3199(E) dated

18.07.2023, for the following:-

"Central Government may, by notification"

Section 17 - Appointment of Secretary, experts professionals and officers and other

employees and other employees of Commission

2[17. Appointment of Secretary, experts professionals and officers and other employees and
other employees of Commission.--

(1) The Commission may appoint a Secretary and such officers and other employees as it
considers necessary for the efficient performance of its functions under this Act.

(2) The salaries and allowances payable to, and other terms and conditions of service of, the
Secretary and officers and other employees of the Commission and the number of such officers
and other employees shall be such as may be prescribed.

(3) The Commission may engage, in accordance with the procedure specified by regulations,
such number of experts and professionals of integrity and outstanding ability, who have special
knowledge of, and experience in, economics, law, business or such other disciplines related to
competition, as it deems necessary to assist the Commission in the discharge of its functions
under this Act.]

________________________

1. Effective from 31.03.2003 by Notification No. 340 (E) Dated 31.03.2003

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to substitution it

read as:

"117. Registrar and officers and other employees of Commission.--

(1) The Commission may appoint a Registrar and such officers and other employees as it considers necessary for

the efficient performance of its functions under this Act.

(2) The salaries and allowances payable to and other terms and conditions of service of the Registrar and officers

and other employees of the Commission and the number of such officers and other employees shall be such as may

be prescribed."

Section 18 - Duties and functions of Commission

2[18. Duties and functions of Commission

 Subject to the provisions of this Act, it shall be the duty of the Commission to eliminate
practices having adverse effect on competition, promote and sustain competition, protect the
interests of consumers and ensure freedom of trade carried on by other participants, in markets
in India:

Provided that the Commission may, for the purpose of discharging its duties or
performing its functions under this Act, enter into any memorandum or arrangement
with the prior approval of the Central Government, with any agency of any foreign
country:

Provided further that, the Commission may, for the purpose of discharging its duties or
performing its functions under this Act, enter into any memorandum or arrangement
with any statutory authority or department of Government.]

___________________________________________

1. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

2. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"18. Duties of Commission

1[Subject to the provisions of this Act, it shall be the duty of the Commission to eliminate practices having adverse

effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade

carried on by other participants, in markets in India:

Provided that the Commission may, for the purpose of discharging its duties or performing its functions under this

Act, enter into any memorandum or arrangement with the prior approval of the Central Government, with any

agency of any foreign country.]

Section 19 - Inquiry into certain agreements and dominant position of enterprise

19. Inquiry into certain agreements and dominant position of enterprise

2[(1) The Commission may inquire into any alleged contravention of the provisions contained in
sub-section (1) of section 3 or sub-section (1) of section 4 either on its own motion or on--

(a) 1[receipt of any information, in such manner and], accompanied by such fee as may be
determined by regulations, from any person, consumer or their association or trade
association; or

(b) a reference made to it by the Central Government or a State Government or a statutory

authority.
 3[Provided that the Commission shall not entertain an information or a reference unless
it is filed within three years from the date on which the cause of action has arisen:

Provided further that an information or a reference may be entertained after the period
specified in the first proviso if the Commission is satisfied that there had been sufficient
cause for not filing the information or the reference within such period after recording its
reasons for condoning such delay.]

(2) Without prejudice to the provisions contained in sub-section (1), the powers and functions of
the Commission shall include the powers and functions specified in sub-sections (3) to (7).

(3) The Commission shall, while determining whether an agreement has an appreciable adverse
effect on competition under section 3, have due regard to all or any of the following factors,
namely:--

(a) creation of barriers to new entrants in the market;

(b) driving existing competitors out of the market;

(c) foreclosure of competition 4[****];

(d) 5[benefits or harm] to consumers;

(e) improvements in production or distribution of goods or provision of services;

(f) promotion of technical, scientific and economic development by means of production or

distribution of goods or provision of services.

(4) The Commission shall, while inquiring whether an enterprise enjoys a dominant position or
not under section4, have due regard to all or any of the following factors, namely:--

(a) market share of the enterprise;

(b) size and resources of the enterprise;

(c) size and importance of the competitors;

(d) economic power of the enterprise including commercial advantages over competitors;

(e) vertical integration of the enterprises or sale or service network of such enterprises;

(f) dependence of consumers on the enterprise;

(g) monopoly or dominant position whether acquired as a result of any statute or by virtue
of being a Government company or a public sector undertaking or otherwise;

(h) entry barriers including barriers such as regulatory barriers, financial risk, high capital
 cost of entry, marketing entry barriers, technical entry barriers, economies of scale, high
cost of substitutable goods or service for consumers;

(i) countervailing buying power;

(j) market structure and size of market;

(k) social obligations and social costs;

(l) relative advantage, by way of the contribution to the economic development, by the
enterprise enjoying a dominant position having or likely to have an appreciable adverse
effect on competition;

(m) any other factor which the Commission may consider relevant for the inquiry.

(5) For determining whether a market constitutes a "relevant market" for the purposes of this
Act, the Commission shall have due regard to the "relevant geographic market" and "relevant
product market".

(6) The Commission shall, while determining the "relevant geographic market", have due regard
to all or any of the following factors, namely:--

(a) regulatory trade barriers;

(b) local specification requirements;

(c) national procurement policies;

(d) adequate distribution facilities;

(e) transport costs;

(f) language;

(g) consumer preferences;

(h) need for secure or regular supplies or rapid after-sales services.

3[(i) characteristics of goods or nature of services;

(j) costs associated with switching supply or demand to other areas.]

(7) The Commission shall, while determining the "relevant product market", have due regard to
all or any of the following factors, namely:--

(a) physical characteristics or end-use of goods 3[or the nature of services];

(b) price of goods or service;

 (c) consumer preferences;

(d) exclusion of in-house production;

(e) existence of specialised producers;

(f) classification of industrial products.]

3(g) costs associated with switching demand or supply to other goods or services;

(h) categories of customers.]

___________________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words "receipt of a complaint,".

2. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

3. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

4. Omitted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023,

for the following:-

"by hindering entry into the market"

5. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"accrual of benefits"

Section 20 - Inquiry into combination by Commission

(1) The Commission may, upon its own knowledge or information relating to acquisition referred
to in clause (a) of section 5 or acquiring of control referred to in clause (b) of section 5 or

merger or amalgamation referred to in 2[clause (c) of section 5 or acquisition of any control,

shares, voting right or assets of an enterprise, merger or amalgamation referred to in clause (d)
of that section], inquire into whether such a combination has caused or is likely to cause an
appreciable adverse effect on competition in India:

Provided that the Commission shall not initiate any inquiry under this sub-section after the
expiry of one year from the date on which such combination has taken effect.

(2) The Commission shall, on receipt of a notice under sub-section (2) of section 6 1[* * *],
inquire whether a combination referred to in that notice or reference has caused or is likely to
cause an appreciable adverse effect on competition in India.
 (3) Notwithstanding anything contained in section 5, the Central Government shall, on the
expiry of a period of two years from the date of commencement of this Act and thereafter every

two years, in consultation with the Commission, 3[enhance or reduce by notification, or keep at
the same level, on the basis of the wholesale price index or fluctuations in exchange rate of
rupee or foreign currencies, or such factors that in its opinion are relevant in this matter, the
value of assets or the value of turnover or value of transaction], for the purposes of that
section.

(4) For the purposes of determining whether a combination would have the effect of or is likely
to have an appreciable adverse effect on competition in the relevant market, the Commission
shall have due regard to all or any of the following factors, namely:--

(a) actual and potential level of competition through imports in the market;

(b) extent of barriers to entry into the market;

(c) level of 4[concentration] in the market;

(d) degree of countervailing power in the market;

(e) likelihood that the combination would result in the parties to the combination being able
to significantly and sustainably increase prices or profit margins;

(f) extent of effective competition likely to sustain in a market;

(g) extent to which substitutes are available or are likely to be available in the market;

(h) market share, in the relevant market, of the persons or enterprise in a combination,
individually and as a combination;

(i) likelihood that the combination would result in the removal of a vigorous and effective
competitor or competitors in the market;

(j) nature and extent of vertical integration in the market;

(k) possibility of a failing business;

(l) nature and extent of innovation;

(m) relative advantage, by way of the contribution to the economic development, by any
Combination having or likely to have appreciable adverse effect on competition;

(n) whether the benefits of the combination outweigh the adverse impact of the
combination, if any.

______________________________________
 1. The word "or upon receipt of a reference under sub section (1) of SECTION 21" Omitted by Act 39 of 2007, S. 14 (w.e.f.1-

6-2011).

2. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"clause (c) of that section"

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"by notification, enhance or reduce, on the basis of the wholesale price index or fluctuations in exchange rate of rupee

or foreign currencies, the value of assets or the value of turnover"

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"combination"

Section 21 - Reference by statutory authority

21. Reference by statutory authority

3[(1) Where in the course of a proceeding before any statutory authority an issue is raised by
any party that any decision which such statutory authority has taken or proposes to take, is or
would be, contrary to any of the provisions of this Act, then such statutory authority may make
a reference in respect of such issue to the Commission.

4[Provided that any statutory authority, may, suo motu, make a reference to the
Commission on any issue that involves any provision of this Act or is related to promoting
the objectives of this Act, as the case may be.]

2[(2) On receipt of a reference under sub-section (1), the Commission shall give its opinion,
within sixty days of receipt of such reference, to such statutory authority which shall consider
the opinion of the Commission and thereafter, give its findings recording reasons therefore on
the issues referred to in the said opinion.]]

________________________________

1. Inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007].

2. Substituted for the following by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]:

"(2) On receipt of a reference under sub-section (7), the Commission shall, after hearing the parties to the proceedings,

give its opinion to such statutory authority which shall thereafter pass such order on the issues referred to in that sub-
 section as it deems fit:

Provided that the Commission shall give its opinion under this section within sixty days of receipt of such

reference."

3. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"1[Provided that any statutory authority, may, suo-moto, make such a reference to the Commission.]"

Section 21A - Reference by Commission

1[21A. Reference by Commission

(1) Where in the course of a proceeding before the Commission an issue is raised by any party
that any decision which, the Commission has taken during such proceeding or proposes to take,

is or would be contrary to any provision of 2[an Act] whose implementation is entrusted to a

statutory authority, then the Commission may make a reference in respect of such issue to the
statutory authority:

3[Provided that the Commission, may, suo motu, make a reference to a statutory authority
on any issue that involves provisions of an Act whose implementation is entrusted to that
statutory authority.]

(2) On receipt of a reference under sub-section (1), the statutory authority shall give its
opinion, within sixty days of receipt of such reference, to the Commission which shall consider
the opinion of the statutory authority, and thereafter give its findings recording reasons
therefore on the issues referred to in the said opinion.]

____________________________

1. Inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007], Section 16, (W.e.f. 20.05.2009).

2. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"this Act"

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"Provided that the Commission, may, suo-moto, make such a reference to the statutory authority."
Section 22 - Meetings of Commission

2[22. Meetings of Commission

(1) The Commission shall meet at such times and such places, and shall observe such rules of
procedure in regard to the transaction of business at its meetings as may be provided by
regulations.

(2) The Chairperson, if for any reason, is unable to attend a meeting of the Commission, the
senior-most Member present at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the Commission shall be decided by a

majority of the Members present and voting, 3[****]:

Provided that the quorum for such meeting shall be three Members.]

____________________________

1. Effective from 19.06.2003 by Notification No. SO 715 (E) Dated 19.06.2003.

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to substitution it

read as:

122. Benches of Commission

(1) The jurisdiction, powers and authority of the Commission may be exercised by Benches thereof.

(2) The Benches shall be constituted by the Chairperson and each Bench shall consist of not less than two

Members.

(3) Every Bench shall consist of at least one Judicial Member.

Explanation.-- For the purposes of this sub-section, "Judicial Member" means a Member who is, or has been, or

is qualified to be, a Judge of a High Court.

(4) The Bench over which the Chairperson presides shall be the Principal Bench and the other Benches shall be

known as the Additional Benches.

(5) There shall be constituted by the Chairperson one or more Benches to be called the Mergers Bench or Mergers

Benches, as the case may be, exclusively to deal with matters referred to in sections 5 and 6.

(6) The places at which the Principal Bench, other Additional Bench or Mergers Bench shall ordinarily sit, shall be

such as the Central Government may, by notification, specify."

3. Omitted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023,

for the following:-

 "and in the event of an equality of votes, the Chairperson or in his absence, the Member presiding, shall have a second

or casting vote"

Section 23 - Distribution of business of Commission amongst Benches [Omitted]

2[Omitted]

____________________________

1. Effective from 19.06.2003 by Notification No. SO 715 (E) Dated 19.06.2003.

2. Section 23 omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to omission

it read as:

"123.Distribution of business of Commission amongst Benches.--

(1) Where any Benches are constituted, the Chairperson may, from time to time, by order, make

provisions as to the distribution of the business of the Commission amongst the Benches and specify the

matters, which may be dealt with by each Bench.

(2) If any question arises as to whether any matter falls within the purview of the business allocated to a

Bench, the decision of the Chairperson thereon shall be final.

(3) The Chairperson may--

(i) transfer a Member from one Bench to another Bench; or

(ii) authorise the Members of one Bench to discharge also the functions of the Members of other

Bench:

Provided that the Chairperson shall transfer, with the prior approval of the Central

Government, a Member from one Bench situated in one city to another Bench situated

in another city.

(4) The Chairperson may, for the purpose of securing that any case or matter which, having regard to the

nature of the questions involved, requires or is required in his opinion or under the rules made by the

Central Government in this behalf, to be decided by a Bench composed of more than two Members, issue

such general or special orders as he may deem fit."

Section 24 - Procedure for deciding a case where Members of a Bench differ in opinion
[Omitted]

1[Omitted]

_______________________________________
 1. Section 24 omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to omission

it read as:

"24. Procedure for deciding a case where Members of a Bench differ in opinion.--

If the Members of a Bench differ in opinion on any point, they shall state the point or points on which they

differ, and make a reference to the Chairperson who shall either hear the point or points himself or refer

the case for hearing on such point or points by one or more of the other Members and such point or points

shall be decided according to the opinion of the majority of the Members who have heard the case,

including those who first heard it."

Section 25 - Jurisdiction of Bench [Omitted]

1[Omitted]

_______________________________________

1. Section 25 omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to omission

it read as:

"25. Jurisdiction of Bench.--

An inquiry shall be initiated or a complaint be instituted or a reference be made under this Act before a

Bench within the local limits of whose jurisdiction--

(a) the respondent, or each of the respondents, where there are more than one, at the time of

the initiation of inquiry or institution of the complaint or making of reference, as the case may

be, actually and voluntarily resides, or carries on business, or personally works for gain; or

(b) any of the respondents, where there are more than one, at the time of the initiation of the

inquiry or institution of complaint or making of reference, as the case may be, actually and

voluntarily resides or carries on business or personally works for gain provided that in such case

either the leave of the Bench is given, or the respondents who do not reside, or carry on

business, or personally work for gain, as aforesaid, acquiesce in such institution; or

(c) the cause of action, wholly or in part, arises.

Explanation.--A respondent, being a person referred to in sub-clause (iii) or sub-clause

(vi) or sub-clause (vii) or sub-clause (viii) of clause (1) of section 2, shall be deemed to

carry on business at its sole or principal place of business in India or at its registered

office in India or where it has also a subordinate office at such place."

Section 26 - Procedure for inquiry on complaints under section 19

2[1[26. Procedure for inquiry under section 19

(1) On receipt of a reference from the Central Government or a State Government or a statutory
authority or on its own knowledge or information received under section 19, if the Commission
is of the opinion that there exists a prima facie case, it shall direct the Director General to cause
an investigation to be made into the matter:

Provided that if the subject matter of an information received is, in the opinion of the
Commission, substantially the same as or has been covered by any previous information
received, then the new information may be clubbed with the previous information.

(2) Where on receipt of a reference from the Central Government or a State Government or a
statutory authority or information received under section 19, the Commission is of the opinion
that there exists no prima facie case, it shall close the matter forthwith and pass such orders as
it deems fit and send a copy of its order to the Central Government or the State Government or
the statutory authority or the parties concerned, as the case may be.

3[(2A) The Commission may not inquire into agreement referred to in section 3 or conduct of an
enterprise or group under section 4, if the same or substantially the same facts and issues
raised in the information received under section 19 or reference from the Central Government or
a State Government or a statutory authority has already been decided by the Commission in its
previous order.]

(3) The Director General shall, on receipt of direction under sub-section (1), submit a report on
his findings within such period as may be specified by the Commission.

3[(3A) If, after consideration of the report of the Director General referred to in sub-section (3),
the Commission is of the opinion that further investigation is required, it may direct the Director
General to investigate further into the matter.

(3B) The Director General shall, on receipt of direction under sub-section (3A), investigate the
matter and submit a supplementary report on his findings within such period as may be
specified by the Commission.]

(4) The Commission may forward a copy of the report referred to in sub-section (3) to the
parties concerned:

Provided that in case the investigation is caused to be made based on a reference

received from the Central Government or the State Government or the statutory

authority, the Commission shall forward a copy of the report referred to in 4[sub-sections
(3) and (3B)] to the Central Government or the State Government or the statutory
authority, as the case may be.
 (5) If the report of the Director General referred to in 4[sub-sections (3) and (3B)] recommends
that there is no contravention of the provisions of this Act, the Commission shall invite
objections or suggestions from the Central Government or the State Government or the
statutory authority or the parties concerned, as the case may be, on such report of the Director
General.

(6) If, after consideration of the objections or suggestions referred to in sub-section (5), if any,
the Commission agrees with the recommendation of the Director General, it shall close the
matter forthwith and pass such orders as it deems fit and communicate its order to the Central
Government or the State Government or the statutory authority or the parties concerned, as the
case may be.

(7) If, after consideration of the objections or suggestions referred to in sub-section (5), if any,
the Commission is of the opinion that further investigation is called for, it may direct further
investigation in the matter by the Director General or cause further inquiry to be made in the
matter or itself proceed with further inquiry in the matter in accordance with the provisions of
this Act.

(8) If the report of the Director General referred to in 4[sub-sections (3) and (3B)] recommends
that there is contravention of any of the provisions of this Act, and the Commission is of the
opinion that further inquiry is called for, it shall inquire into such contravention in accordance
with the provisions of this Act.]]

5[(9) Upon completion of the investigation or inquiry under sub-section (7) or sub-section (8),
as the case may be, the Commission may pass an order closing the matter or pass an order
under section 27, and send a copy of its order to the Central Government or the State
Government or the statutory authority or the parties concerned, as the case may be:

Provided that before passing such order, the Commission shall issue a show-cause notice
indicating the contraventions alleged to have been committed and such other details as
may be specified by regulations and give a reasonable opportunity of being heard to the
parties concerned.]

_____________________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to omission it read as:

"(1) On receipt of a complaint or a reference from the Central Government or a State Government or a statutory

authority or on its own knowledge or information, under section 19, if the Commission is of the opinion that there

exists a prima facie case, it shall direct the Director General to cause an investigation to be made into the matter.

(2) The Director General shall, on receipt of direction under sub-section (1), submit a report on his findings within

such period as may be specified by the Commission.

 (3) Where on receipt of a complaint under clause (a) of sub-section (1) of section 19, the Commission is of the

opinion that there exists no prima facie case, it shall dismiss the complaint and may pass such orders as it deems

fit, including imposition of costs, if necessary.

(4) The Commission shall forward a copy of the report referred to in sub-section (2) to the parties concerned or to

the Central Government or the State Government or the statutory authority, as the case may be.

(5) If the report of the Director General relates on a complaint and such report recommends that there is no

contravention of any of the provisions of this Act, the complainant shall be given an opportunity to rebut the

findings of the Director General.

(6) If, after hearing the complainant, the Commission agrees with the recommendation of the Director General, it

shall dismiss the complaint.

(7) If, after hearing the complainant, the Commission is of the opinion that further inquiry is called for, it shall direct

the complainant to proceed with the complaint.

(8) If the report of the Director General relates on a reference made under sub-section (1) and such report

recommends that there is no contravention of the provisions of this Act, the Commission shall invite comments of

the Central Government or the State Government or the statutory authority, as the case may be, on such report

and on receipt of such comments, the Commission shall return the reference if there is no prima facie case or

proceed with the reference as a complaint if there is a prima facie case.

(9) If the report of the Director General referred to in sub-section (2) recommends that there is contravention of

any of the provisions of this Act, and the Commission is of the opinion that further inquiry is called for, it shall

inquire into such contravention in accordance with the provisions of this Act."

2. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

3. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"sub-section (3)"

5. Inserted by Competition (Amendment) Act, 2023.

Section 27 - Orders by Commission after inquiry into agreements or abuse of dominant

position

27. Orders by Commission after inquiry into agreements or abuse of dominant position

6[Where after inquiry the Commission finds that any agreement referred to in section 3 or
action of an enterprise in a dominant position, is in contravention of section 3 or section 4, as
the case may be, it may pass all or any of the following orders, namely:--

(a) direct any enterprise or association of enterprises or person or association of persons, as

the case may be, involved in such agreement, or abuse of dominant position, to discontinue
and not to re-enter such agreement or discontinue such abuse of dominant position, as the
case may be;

7[(b) impose such penalty, as it may deem fit which shall be not more than ten per cent. of
the average of the turnover or income, as the case may be, for the last three preceding
financial years, upon each of such person or enterprise which is a party to such agreement
or has abused its dominant position:

Provided that in case any agreement referred to in section 3 has been entered into by a
cartel, the Commission may impose upon each producer, seller, distributor, trader or
service provider included in that cartel, a penalty of up to three times of its profit for
each year of the continuance of such agreement or ten per cent. of its turnover or
income, as the case may be, for each year of the continuance of such agreement,
whichever is higher.

Explanation 1.- For the purposes of this clause, the expression "turnover" or
"income", as the case may be, shall be determined in such manner as may be
specified by regulations.

Explanation 2.- For the purposes of this clause, "turnover" means global turnover
derived from all the products and services by a person or an enterprise.]

2[* * *]

(d) direct that the agreements shall stand modified to the extent and in the manner as may
be specified in the order by the Commission;

(e) direct the enterprises concerned to abide by such other orders as the Commission may
pass and comply with the directions, including payment of costs, if any;

3[* * *]

(g) pass such other 4[order or issue such directions] as it may deem fit.

5[Provided that while passing orders under this section, if the Commission comes to a
finding, that an enterprise in contravention to section 3 or section 4 of the Act is a
member of a group as defined in clause (b) of the Explanation to section 5 of the Act,
and other members of such a group are also responsible for, or have contributed to, such
a contravention, then it may pass orders, under this section, against such members of
 the group.]]

__________________________________________

1. Proviso substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to substitution it read as:

"Provided that in case any agreement referred to in section 3has been entered into by any cartel, the Commission

shall impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty

equivalent to three times of the amount of profits made out of such agreement by the cartel or ten per cent, of the

average of the turnover of the cartel for the last preceding three financial years, whichever is higher;"

2. Clause (c) omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to omission it read as:

"(c) award compensation to parties in accordance with the provisions contained in section 34;"

3. Clause (f) omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to omission it read as:

"(f) recommend to the Central Government for the division of an enterprise enjoying dominant position;"

4. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the word "order".

5. Proviso inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007].

6. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

7. Substituted by Competition (Amendment) Act, 2023, for the following:-

"(b) impose such penalty, as it may deem fit which shall be not more than ten per cent. of the average of the turnover

for the last three preceding financial years, upon each of such person or enterprises which are parties to such

agreements or abuse:

1[Provided that in case any agreement referred to in section 3 has been entered into by a cartel, the Commission

may impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty of up

to three times of its profit for each year of the continuance of such agreement or ten per cent, of its turnover for

each year of the continuance of such agreement, whichever is higher.]"

Section 28 - Division of enterprise enjoying dominant position

3[(1) The 1[Commission], may, notwithstanding anything contained in any other law for the
time being in force, by order in writing, direct division of an enterprise enjoying dominant
position to ensure that such enterprise does not abuse its dominant position.

(2) In particular, and without prejudice to the generality of the foregoing powers, the order
referred to in sub-section (1) may provide for all or any of the following matters, namely:--

(a) the transfer or vesting of property, rights, liabilities or obligations;

 (b) the adjustment of contracts either by discharge or reduction of any liability or obligation
or otherwise;

(c) the creation, allotment, surrender or cancellation of any shares, sks or securities;

2[* * *]

(e) the formation or winding up of an enterprise or the amendment of the memorandum of

association or articles of association or any other instruments regulating the business of any
enterprise;

(f) the extent to which, and the circumstances in which, provisions of the order affecting an
enterprise may be altered by the enterprise and the registration thereof;

(g) any other matter which may be necessary to give effect to the division of the enterprise.

(3) Notwithstanding anything contained in any other law for the time being in force or in any
contract or in any memorandum or articles of association, an officer of a company who ceases
to hold office as such in consequence of the division of an enterprise shall not be entitled to
claim any compensation for such cesser.]

___________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words, brackets, letter and figures

"Central Government, on recommendation under clause (f) of section 27"

2. Omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to omission it read as:

"(d) the payment of compensation to any person who suffered any loss due to dominant position of such enterprise;"

3. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

Section 29 - Procedure for investigation of combinations

(1) Where the Commission is of the 1[prima facie] opinion that a combination is likely to cause,
or has caused an appreciable adverse effect on competition within the relevant market in India,
it shall issue a notice to show cause to the parties to combination calling upon them to respond
2[within fifteen days] of the receipt of the notice, as to why investigation in respect of such
combination should not be conducted.

1[(1A) After receipt of the response of the parties to the combination under sub-section (1), the
Commission may call for a report from the Director General and such report shall be submitted
by the Director General within such time as the Commission may direct.]
 3[(1B) The Commission shall, within thirty days of receipt of notice under sub-section (2) of
section 6, form its prima facie opinion referred to in sub-section (1).]

(2) The Commission, if it is prima facie of the opinion that the combination has, or is likely to

have, an appreciable adverse effect on competition, it shall, 4[within seven days] from the date

of receipt of the response of the parties to the combination, 1[or the receipt of the report from
Director General called under sub-section (1A), whichever is later] direct the parties to the said

combination to publish details of the combination 5[within seven days] of such direction, in such
manner, as it thinks appropriate, for bringing the combination to the knowledge or information
of the public and persons affected or likely to be affected by such combination.

(3) The Commission may invite any person or member of the public, affected or likely to be
affected by the said combination, to file his written objections, if any, before the Commission
6[within ten days] from the date on which the details of the combination were published under
sub-section (2).

(4) The Commission may, 7[within seven days] from the expiry of the period specified in sub-
section (3), call for such additional or other information as it may deem fit from the parties to
the said combination.

(5) The additional or other information called for by the Commission shall be furnished by the

parties referred to in sub-section (4) 8[within ten days] from the expiry of the period specified
in sub-section (4).

9[(6) After receipt of all information, the Commission shall proceed to deal with the case in
accordance with the provisions contained in section 29A or section 31, as the case may be.

(7) Notwithstanding anything contained in this section, the Commission may accept appropriate
modifications offered by the parties to the combination or suo motu propose modifications, as
the case may be, before forming a prima facie opinion under sub-section (1).]

__________________________________

1. Inserted by the Competition (Amendment) Act, 2007 Act No. 39 of 2007, section 22 (w.e.f. 20.05.2009).

2. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within thirty days"

3. Inserted by Competition (Amendment) Act, 2023.

4. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within seven working days"

 5. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within ten working days"

6. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within fifteen working days"

7. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within fifteen working days"

8. Substituted by Competition (Amendment) Act, 2023, for the following:-

"within fifteen days"

9. Substituted by Competition (Amendment) Act, 2023, for the following:-

"(6) After receipt of all information and within a period of forty-five working days from the expiry of the period specified

in sub-section (5), the Commission shall proceed to deal with the case in accordance with the provisions contained in

section 31."

Section 29A - Issue of statement of objections by Commission and proposal of modifications

1[29A. Issue of statement of objections by Commission and proposal of modifications

(1) Upon completion of the process under section 29, where the Commission is of the opinion
that the combination has, or is likely to have, an appreciable adverse effect on competition, it
shall issue a statement of objections to the parties identifying such appreciable adverse effect
on competition and direct the parties to explain within twenty-five days of receipt of the
statement of objections, why such combination should be allowed to take effect.

(2) Where the parties to the combination consider that such appreciable adverse effect on
competition can be eliminated by suitable modification to such combination, they may submit an
offer of appropriate modification to the combination along with their explanation to the
statement of objections issued under sub-section (1) in such manner as may be specified by
regulations.

(3) If the Commission does not accept the modification submitted by the parties under sub-
section (2) it shall, within seven days from the date of receipt of the proposed modifications
under that sub-section, communicate to the parties as to why the modification is not sufficient
to eliminate the appreciable adverse effect on competition and call upon the parties to furnish,
within twelve days of the receipt of the said communication, revised modification, if any, to
eliminate the appreciable adverse effects on competition:
 Provided that the Commission shall evaluate such proposal for modification within twelve
days from receipt of such proposal:

Provided further that the Commission may suo motu propose appropriate modifications
to the combination which may be considered by the parties to the combination.]

1. Inserted by Competition (Amendment) Act, 2023.

Section 30 - Procedure in case of notice under sub-section (2) of section 6

1[30. Procedure in case of notice under sub-section (2) of section 6.--

Where any person or enterprise has given a notice under sub-section (2) of section 6, the
Commission shall examine such notice and form its prima facie opinion as provided in sub-
section (1) of section 29 and proceed as per provisions contained in that section.]

__________________________________

1. Substituted by the Competition (Amendment) Act, 2007 Act No. 39 of 2007, section 23, for S.30 (w.e.f. 1-6-2011). Prior

to substitution it read as:

"30. Inquiry into disclosures under sub-section (2) of section 6.--

Where any person or enterprise has given a notice under sub-section (2) of section 6, the Commission shall inquire-

(a) whether the disclosure made in the notice is correct;

(b) whether the combination has, or is likely to have, an appreciable adverse effect on competition."

Section 31 - Orders of Commission on [Omitted] combinations

31. Orders of Commission on 3[****] combinations

(1) Where the Commission is of the opinion that any combination does not, or is not likely to,
have an appreciable adverse effect on competition, it shall, by order, approve that combination
4[****] in respect of which a notice has been given under sub-section (2) of section 6.

5[Provided that if the Commission does not form a prima facie opinion as provided under
sub-section (1B) of section 29, the combination shall be deemed to have been approved
and no separate order shall be required to be passed.]

(2) Where the Commission is of the opinion that the combination has, or is likely to have, an
appreciable adverse effect on competition, it shall direct that the combination shall not take
effect.

6[(3) Where the Commission is of the opinion that any appreciable adverse effect on
competition that the combination has, or is likely to have, can be eliminated by modification
proposed by the parties or the Commission, as the case may be, under sub-section (7) of
section 29 or sub-section (2) or sub-section (3) of section 29A, it may approve the combination
subject to such modifications as it thinks fit.

(4) Where a combination is approved by the Commission under sub-section (3), the parties to
the combination shall carry out such modification within such period as may be specified by the
Commission.

(5) Where--

(a) the Commission has directed under sub-section (2) that the combination shall not
take effect; or

(b) the parties to the combination, fail to carry out the modification within such period as
may be specified by the Commission under sub-section (4); or

(c) the Commission is of the opinion that the combination has, or is likely to have, an
appreciable adverse effect on competition which cannot be eliminated by suitable
modification to such combination, then, without prejudice to any penalty which may be
imposed or any prosecution which may be initiated under this Act, the Commission may
order that such combination shall not be given effect to, or be declared void, or frame a
scheme to be implemented by the parties to address the appreciable adverse effect on
competition, as the case may be.

(6) If no order is passed or direction issued by the Commission in accordance with the
provisions of sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), as the
case may be, within a period of one hundred and fifty days from the date of notice given to the
Commission under sub-section (2) of section 6, the combination shall be deemed to have been
approved by the Commission.]

7[****]

(13) Where the Commission has ordered a combination to be void, the acquisition or acquiring
of control or merger or amalgamation referred to in section 5, shall be dealt with by the
authorities under any other law for the time being in force as if such acquisition or acquiring of
control or merger or amalgamation had not taken place and the parties to the combination shall
be dealt with accordingly.

(14) Nothing contained in this Chapter shall affect any proceeding initiated or which may be
 initiated under any other law for the time being in force.

_________________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words, brackets and figures "ninety

working days from the date of publication referred to in sub-section (2) of section 29" (w.e.f. 1-6-2011).

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words "ninety working" (w.e.f. 1-6-

2011).

3. Omitted by Competition (Amendment) Act, 2023, for the following:-

"certain"

6. Substituted by Competition (Amendment) Act, 2023, for the following:-

"(3) Where the Commission is of the opinion that the combination has, or is likely to have, an appreciable adverse effect

on competition but such adverse effect can be eliminated by suitable modification to such combination, it may propose

appropriate modification to the combination, to the parties to such combination.

(4) The parties, who accept the modification proposed by the Commission under sub-section (3), shall carry out such

modification within the period specified by the Commission.

(5) If the parties to the combination, who have accepted the modification under sub-section (4), fail to carry out the

modification within the period specified by the Commission, such combination shall be deemed to have an appreciable

adverse effect on competition and the Commission shall deal with such combination in accordance with the provisions of

this Act.

(6) If the parties to the combination do not accept the modification proposed by the Commission under sub-section (3),

such parties may, within thirty working days of the modification proposed by the Commission, submit amendment to the

modification proposed by the Commission under that sub-section."

7. Omitted by Competition (Amendment) Act, 2023, for the following:-

"(7) If the Commission agrees with the amendment submitted by the parties under sub-section (6), it shall, by order,

approve the combination.

(8) If the Commission does not accept the amendment submitted under sub-section (6), then, the parties shall be

allowed a further period of thirty working days within which such parties shall accept the modification proposed by the

Commission under sub-section (3).

(9) If the parties fail to accept the modification proposed by the Commission within thirty working days referred to in

sub-section (6) or within a further period of thirty working days referred to in sub-section (5), the combination shall be

deemed to have an appreciable adverse effect on competition and be dealt with in accordance with the provisions of this

Act.
 (10) Where the Commission has directed under sub-section (2) that the combination shall not take effect or the

combination is deemed to have an appreciable adverse effect on competition under sub-section (9), then, without

prejudice to any penalty which may be imposed or any prosecution which may be initiated under this Act, the

Commission may order that--

(a) the acquisition referred to in clause (a) of section 5; or

(b) the acquiring of control referred to in clause (b) of section 5; or

(c) the merger or amalgamation referred to in clause (c) of section 5, shall not be given effect to:

Provided that the Commission may, if it considers appropriate, frame a scheme to implement its order

under this sub-section.

(11) If the Commission does not, on the expiry of a period of 1[two hundred and ten days from the date of notice given

to the Commission under sub-section (2) of section 6], pass an order or issue direction in accordance with the provisions

of sub-section (1) or sub-section (2) or sub-section (7), the combination shall be deemed to have been approved by the

Commission.

Explanation.-- For the purposes of determining the period of 2[two hundred and ten] days specified in this sub-

section, the period of thirty working days specified in sub-section (6) and a further period of thirty working days

specified in sub-section (8) shall be excluded.

(12) Where any extension of time is sought by the parties to the combination, the period of ninety working days shall be

reckoned after deducting the extended time granted at the request of the parties."

Section 32 - Acts taking place outside India but having an effect on competition in India

2[The Commission shall, notwithstanding that,--

(a) an agreement referred to in section 3 has been entered into outside India; or

(b) any party to such agreement is outside India; or

(c) any enterprise abusing the dominant position is outside India; or

(d) a combination has taken place outside India; or

(e) any party to combination is outside India; or

(f) any other matter or practice or action arising out of such agreement or dominant position

or combination is outside India, have power to inquire 1[in accordance with the provisions

contained in sections 19, 20, 26, 3[29, 29A and 30] of the Act] into such agreement or
abuse of dominant position or combination if such agreement or dominant position or
 combination has, or is likely to have, an appreciable adverse effect on competition in the

relevant market in India 1[and pass such orders as it may deem fit in accordance with the
provisions of this Act].]

_______________________________

1. Inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007].

2. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

3. Substituted by Competition (Amendment) Act, 2023, for the following:-

"29 and 30"

Section 33 - Power to issue interim orders

Power to issue interim orders

2[1[33. Power to issue interim orders

Where during an inquiry, the Commission is satisfied that an act in contravention of sub-
section (1) of section 3 or sub-section (1) of section 4 or section 6 has been committed and
continues to be committed or that such act is about to be committed, the Commission may,
by order, temporarily restrain any party from carrying on such act until the conclusion of
such inquiry or until further orders, without giving notice to such party, where it deems it
necessary.]]

________________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to substitution it read as:

"33. Power to grant interim relief

(1) Where during an inquiry before the Commission, it is proved to the satisfaction of the Commission, by affidavit

or otherwise, that an act in contravention of sub-section (1) of section 3 or sub-section (1) of section 4 or section 6

has been committed and continues to be committed or that such act is about to be committed, the Commission

may, by order, grant a temporary injunction restraining any party from carrying on such act until the conclusion of

such inquiry or until further orders, without giving notice to the opposite party, where it deems it necessary.

(2) Where during the inquiry before the Commission it is proved to the satisfaction of the Commission by affidavit

or otherwise that import of any goods is likely to contravene sub-section (1) of section 3 or sub-section (1) of

section 4 or section 6, it may, by order, grant a temporary injunction restraining any party from importing such

goods until the conclusion of such inquiry or until further orders, without giving notice to the opposite party, where

it deems it necessary and a copy of such order granting temporary injunction shall be sent to the concerned
 authorities.

(3) The provisions of rules 2A to 5 (both inclusive) of Order XXXIX of the First Schedule to the Code of Civil

Procedure, 1908 (5 of 1908) shall, as far as may be, apply to a temporary injunction issued by the Commission

under this Act, as they apply to a temporary injunction issued by a civil court, and any reference in any such rule to

a suit shall be construed as a reference to any inquiry before the Commission."

2. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

Section 34 - Power to award compensation [Omitted]

Power to award compensation [Omitted]

1[ * * * ]

________________________________________

1. Section 34 omitted by Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to omission it

read as:

"(1) Without prejudice to any other provisions contained in this Act, any person may make an application to the

Commission for an order for the recovery of compensation from any enterprise for any loss or damage shown to have

been suffered, by such person as a result of any contravention of the provisions of Chapter II, having been committed

by such enterprise.

(2) The Commission may, after an inquiry made into the allegations mentioned in the application made under sub-

section (1), pass an order directing the enterprise to make payment to the applicant, of the amount determined by it as

realisable from the enterprise as compensation for the loss or damage caused to the applicant as a result of any

contravention of the provisions of Chapter II having been committed by such enterprise.

(3) Where any loss or damage referred to in sub-section (1) is caused to numerous persons having the same interest,

one or more of such persons may, with the permission of the Commission, make an application under that sub-section

for and on behalf of, or for the benefit of, the persons so interested, and thereupon, the provisions of rule 8 of Order 1

of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall apply subject to the modification that every

reference therein to a suit or decree shall be construed as a reference to the application before the Commission and the

order of the Commission thereon."

Section 35 - Appearance before Commission

4[1] 2[3[A party] or the Director General may either appear in person or authorise one or more
chartered accountants or company secretaries or cost accountants or legal practitioners or any
of his or its officers to present his or its case before the Commission.

Explanation.--For the purposes of this section,--

 (a) "chartered accountant" means a chartered accountant as defined in clause (b)
of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of
1949) and who has obtained a certificate of practice under sub-section (1) of
section 6 of that Act;

(b) "company secretary" means a company secretary as defined in clause (c) of

sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980)
and who has obtained a certificate of practice under sub-section (1) of section 6
of that Act;

(c) "cost accountant" means a cost accountant as defined in clause (b) of sub--
section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of
1959) and who has obtained a certificate of practice under sub-section (1) of
section 6 of that Act;

(d) "legal practitioner" means an advocate, vakil or an attorney of any High

Court, and includes a pleader in practice.]

5[(2) Without prejudice to sub-section (1), a party may call upon experts from the fields of
economics, commerce, international trade or from any other discipline to provide an expert
opinion in connection with any matter related to a case.]

__________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] for the words "complainant or defendant".

2. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"A 1[person or an enterprise]"

4. Numbered by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

5. Inserted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f. 18.05.2023.

Section 36 - Power of Commission to regulate its own procedure

Power of Commission to regulate its own procedure

2[36. Power of Commission to regulate its own procedure.--

(1) In the discharge of its functions, the Commission shall be guided by the principles of natural
justice and, subject to the other provisions of this Act and of any rules made by the Central
 Government, the Commission shall have the powers to regulate its own procedure.

(2) The Commission shall have, for the purposes of discharging its functions under this Act, the
same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908),
while trying a suit, in respect of the following matters, namely: --

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavit;

(d) issuing commissions for the examination of witnesses or documents;

(e) requisitioning, subject to the provisions of sections 123 and 124 of the Indian
Evidence Act, 1872(1 of 1872), any public record or document or copy of such record or
document from any office.

(3) The Commission may call upon such experts, from the fields of economics, commerce,
accountancy, international trade or from any other discipline as it deems necessary, to assist the
Commission in the conduct of any inquiry by it.

(4) The Commission may direct any person --

(a) to produce before the Director General or the Secretary or an officer authorised by it,
such books or other documents in the custody or under the control of such person so
directed as may be specified or described in the direction, being documents relating to
any trade, the examination of which may be required for the purposes of this Act;

(b) to furnish to the Director General or the Secretary or any other officer authorised by
it, as respects the trade or such other information as may be in his possession in relation
to the trade carried on by such person as may be required for the purposes of this Act.]

_______________________________

1. Effective from 19.06.2003 by Notification No. SO 715 (E) Dated 19.06.2003.

2. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to substitution it

read as:

"136. Power of Commission to regulate its own procedure.--

(1) The Commission shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5

of1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and

of any rules made by the Central Government, the Commission shall have powers to regulate its own procedure

including the places at which they shall have their sittings, duration of oral hearings when granted, and times of its

inquiry.
(2) The Commission shall have, for the purposes of discharging its functions under this Act, the same powers as are

vested in a civil court under the Code of Civil Procedure, 1908 (5 of1908), while trying a suit/in respect of the

following matters, namely:--

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses or documents;

(e) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872),

requisitioning any public record or document or copy of such record or document from any office;

(f) dismissing an application in default or deciding it ex-parte;

(g) any other matter which maybe prescribed.

(3) Every proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of

sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860) and the

Commission shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of

Criminal Procedure, 1973 (2 of 1974).

(4) The Commission may call upon such experts, from the fields of economics, commerce, accountancy,

international trade or from any other discipline as it deems necessary, to assist the Commission in the conduct of

any inquiry or proceeding before it.

(5) The Commission may direct any person--

(a) to produce before the Director General or the Registrar or an officer authorised by it, such books, accounts

or other documents in the custody or under the control of such person so directed as may be specified or

described in the direction, being documents relating to any trade, the examination of which may be required

for the purposes of this Act;

(b) to furnish to the Director General or the Registrar or any officer authorised by it, as respects the trade or

such other information as may be in his possession in relation to the trade carried on by such person, as may

be required for the purposes of this Act.

(6) If the Commission is of the opinion that any agreement referred to in section 3 or abuse of dominant position

referred to in section 4 or the combination referred to in section 5has caused or is likely to cause an appreciable

adverse effect on competition in the relevant market in India and it is necessary to protect, without further delay,

the interests of consumers and other market participants in India, it may conduct an inquiry or adjudicate upon any

matter under this Act after giving a reasonable oral hearing to the parties concerned."
Section 37 - Review of orders of Commission [Omitted]

Review of orders of Commission [Omitted]

1[* * *]

____________________________________

1. Section 37 omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007] w.e.f. 12.10.2007. Prior to omission

it read as:

"37. Review of orders of Commission.--

Any person aggrieved by an order of the Commission from which an appeal is allowed by this Act but no appeal has

been preferred, may, within thirty days from the date of the order, apply to the Commission for review of its order

and the Commission may make such order thereon as it thinks fit:

Provided that the Commission may entertain a review application after the expiry of the said period of thirty

days, if it is satisfied that the applicant was prevented by sufficient cause from preferring the application in

time:

Provided further that no order shall be modified or set aside without giving an opportunity of being heard to

the person in whose favour the order is given and the Director General where he was a party to the

proceedings."

Section 38 - Rectification of orders

1[(1) With a view to rectifying any mistake apparent from the record, the Commission may
amend any order passed by it under the provisions of this Act.

(2) Subject to the other provisions of this Act, the Commission may make--

(a) an amendment under sub-section (1) of its own motion;

(b) an amendment for rectifying any such mistake which has been brought to its notice by
any party to the order.

Explanation.-- For the removal of doubts, it is hereby declared that the Commission
shall not, while rectifying any mistake apparent from record, amend substantive part
of its order passed under the provisions of this Act.]

____________________

1. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

Section 39 - Execution of order of Commission imposing monetary penalty

1[39. 2[Execution of order of Commission imposing monetary penalty

(1) If a person fails to pay any monetary penalty imposed on him under this Act, the
Commission shall proceed to recover such penalty in such manner as may be specified by the
regulations.

(2) In a case where the Commission is of the opinion that it would be expedient to recover the
penalty imposed under this Act in accordance with the provisions of the Income-tax Act, 1961
(43 of 1961), it may make a reference to this effect to the concerned income-tax authority
under that Act for recovery of the penalty as tax due under the said Act.

(3) Where a reference has been made by the Commission under sub-section (2) for recovery of
penalty, the person upon whom the penalty has been imposed shall be deemed to be the
assessee in default under the Income-tax Act, 1961(43 of 1961) and the provisions contained in
sections 221 to 227, 228A, 229, 231 and 232 of the said Act and the Second Schedule to that
Act and any rules made thereunder shall, in so far as may be, apply as if the said provisions
were the provisions of this Act and referred to sums by way of penalty imposed under this Act
instead of to income-tax and sums imposed by way of penalty, fine and interest under the
Income-tax Act, 1961 and to the Commission instead of the Assessing Officer.

Explanation 1.--Any reference to sub-section (2) or sub-section (6) of section 220 of the
Income-tax Act, 1961 (43 of 1961), in the said provisions of that Act or the rules made
thereunder shall be construed as references to sections 43 to 45 of this Act.

Explanation 2.--The Tax Recovery Commissioner and the Tax Recovery Officer referred to in
the Income-tax Act, 1961 (43 of 1961) shall be deemed to be the Tax Recovery
Commissioner and the Tax Recovery Officer for the purposes of recovery of sums imposed by
way of penalty under this Act and reference made by the Commission under sub-section (2)
would amount to drawing of a certificate by the Tax Recovery Officer as far as demand
relating to penalty under this Act.

Explanation 3.-- Any reference to appeal in Chapter XVIID and the Second Schedule to the
Income-tax Act, 1961 (43 of 1961), shall be construed as a reference to appeal before the
Competition Appellate Tribunal under section 53B of this Act.]

_________________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007]. Prior to substitution it read as:

"39. Execution of orders of Commission.--

Every order passed by the Commission under this Act shall be enforced by the Commission in the same manner as

if it were a decree or order made by a High Court or the principal civil court in a suit pending therein and it shall be
 lawful for the Commission to send, in the event of its inability to execute it, such order to the High Court or the

principal civil court, as the case may be, within the local limits of whose jurisdiction.--

(a) in the case of an order against a person referred to in sub-clause (iii) or sub-clause (vi) or sub-clause (vii)

of clause (1) of section 2, the registered office or the sole or principal place of business of the person in India

or where the person has also a subordinate office, that subordinate office, is situated;

(b) in the case of an order against any other person, the place, where the person concerned voluntarily resides

or carries on business or personally works for gain, is situated,

and thereupon the court to which the order is so sent shall execute the order as if it were a decree or order sent to it for

execution."

2. Effective date :20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

Section 40 - Appeal [Omitted]

1[* * *]

____________________________________________

1. Omitted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007, w.e.f. 12.10.2007. Prior to omission it read as:

"40. Appeal.--

Any person aggrieved by any decision or order of the Commission may file an appeal to the Supreme Court within

sixty days from the date of communication of the decision or order of the Commission to him on one or more of the

grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908):

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient cause

from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty

days:

Provided further that no appeal shall lie against any decision or order of the Commission made with the

consent of the arties.

Section 41 - Director-General to investigate contraventions

2[(1) The Director General shall, when so directed by the Commission, assist the Commission in
investigating into any contravention of the provisions of this Act or any rules or regulations
made thereunder.

(2) The Director General shall have all the powers as are conferred upon the Commission under
sub-section (2) of section 36.
3[(3) Without prejudice to sub-section (2), it shall be the duty of all officers, other employees
and agents of a party which are under investigation--

(a) to preserve and to produce all information, books, papers, other documents and
records of, or relating to, the party which are in their custody or power to the Director
General or any person authorised by it in this behalf; and

(b) to give all assistance in connection with the investigation to the Director General.

(4) The Director General may require any person other than a party referred to in sub-section
(3) to furnish such information or produce such books, papers, other documents or records
before it or any person authorised by it in this behalf if furnishing of such information or the
production of such books, papers, other documents or records is relevant or necessary for the
purposes of its investigation.

(5) The Director General may keep in his custody any information, books, papers, other
documents or records produced under sub-section (3) or sub-section (4) for a period of one
hundred and eighty days and thereafter shall return the same to the person by whom or on
whose behalf the information, books, papers, other documents or records were produced:

Provided that the information, books, papers, other documents or records may be called
for by the Director General if they are needed again for a further period of one hundred
and eighty days by an order in writing:

Provided further that the certified copies of the information, books, papers, other
documents or records, as may be applicable, produced before the Director General may
be provided to the party or person on whose behalf the information, books, papers,
other documents or records are produced at their own cost.

(6) The Director General may examine on oath--

(a) any of the officers and other employees and agents of the party being investigated;
and

(b) with the previous approval of the Commission, any other person, in relation to the
affairs of the party being investigated and may administer an oath accordingly and for
that purpose may require any of those persons to appear before it personally.

(7) The examination under sub-section (6) shall be recorded in writing and shall be read over to
or by, and signed by, the person examined and may thereafter be used in evidence against it.

(8) Where in the course of investigation, the Director General has reasonable grounds to believe
that information, books, papers, other documents or records of, or relating to, any party or
person, may be destroyed, mutilated, altered, falsified or secreted, the Director General may
make an application to the Chief Metropolitan Magistrate, Delhi for an order for seizure of such
information, books, papers, other documents or records.

(9) The Director General may make requisition of the services of any police officer or any officer
of the Central Government to assist him for all or any of the purposes specified in sub-section
(10) and it shall be the duty of every such officer to comply with such requisition.

(10) The Chief Metropolitan Magistrate, Delhi may, after considering the application and hearing
from the Director General, by order, authorise the Director General--

(a) to enter, with such assistance, as may be required, the place or places where such
information, books, papers, other documents or records are kept;

(b) to search that place or places in the manner specified in the order; and

(c) to seize information, books, papers, other documents or records as it considers

necessary for the purpose of the investigation:

Provided that certified copies of the seized information, books, papers, other
documents or records, as the case may be, may be provided to the party or
person from whose place or places such documents have been seized at its cost.

(11) The Director General shall keep in his custody such information, books, papers, other
documents or records seized under this section for such period not later than the conclusion of
the investigation as it considers necessary and thereafter shall return the same to the party or
person from whose custody or power they were seized and inform the Chief Metropolitan
Magistrate, of such return:

Provided that the Director General may, before returning such information, books,
papers, other documents or records take copies of, or extracts thereof or place
identification marks on them or any part thereof.

(12) Save as otherwise provided in this section, every search or seizure made under this section
shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973
(2 of 1974), relating to search or seizure made under that Code.]]

4[Explanation.- For the purposes of this section,--

(a) "agent", in relation to any person, means any one acting or purporting to act
for or on behalf of such person, and includes the bankers, and persons employed
as auditors and legal advisors, by such person;

(b) "officers", in relation to any company or body corporate, includes any trustee
for the debenture holders of such company or body corporate;
 (c) any reference to officers and other employees or agents shall be construed as
a reference to past as well as present officers and other employees or agents, as
the case may be.]

_____________________________________

1. Explanation inserted by the Competition (Amendment) Act, 2007 [Act No. 39 of 2007].

2. Effective date:20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"(3) Without prejudice to the provisions of sub-section (2), sections 240 and 240A of the 5[the Companies Act, 2013 (18

of 2013)], so far as may be, shall apply to an investigation made by the Director General or any other person

investigating under his authority, as they apply to an inspector appointed under that Act."

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"1[Explanation.-- For the purposes of this section,

(a) the words "the Central Government" under section 240 of the 5[the Companies Act, 2013 (18 of 2013)]

shall be construed as "the Commission";

(b) the word "Magistrate" under section 240A of the 5[the Companies Act, 2013 (18 of 2013)] shall be

construed as "the Chief Metropolitan Magistrate, Delhi"]"

5. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"Companies Act, 1956 (1 of 1956)"

Section 42 - Contravention of orders of Commission

2[1[42. Contravention of orders of Commission

(1) The Commission may cause an inquiry to be made into compliance of its orders or directions
made in exercise of its powers under the Act.

(2) If any person, without reasonable cause, fails to comply with the orders or directions of the

Commission issued under 3[sections 6, 27, 28, 31, 32, 33, 42A, 43, 43A, 44 and 45 of the Act,
he shall be liable to a penalty] which may extend to rupees one lakh for each day during which
such non-compliance occurs, subject to a maximum of rupees ten crore, as the Commission
 may determine.

(3) If any person does not comply with the orders or directions issued, or fails to 4[pay the
penalty imposed under sub-section (2)], he shall, without prejudice to any proceeding under
section 39, be punishable with imprisonment for a term which may extend to three years, or
with fine which may extend to rupees twenty-five crore, or with both, as the Chief Metropolitan
Magistrate, Delhi may deem fit:

Provided that the Chief Metropolitan Magistrate, Delhi shall not take cognizance of any
offence under this section save on a complaint filed by the Commission or any of its
officers authorised by it.]]

___________________________________

1. Substituted by the Competition (Amendment) Act, 2007 [Act No 39 of 2007]. Prior to substitution it read as:

"42. Contravention of orders of Commission.--

(1) Without prejudice to the provisions of this Act, if any person contravenes, without any reasonable ground, any

order of the Commission, or any condition or restriction subject to which any approval, sanction, direction or

exemption in relation to any matter has been accorded, given, made or granted under this Act or fails to pay the

penalty imposed under this Act, he shall be liable to be detained in civil prison for a term which may extend to one

year, unless in the meantime the Commission directs his release and he shall also be liable to a penalty not

exceeding rupees ten lakhs.

(2) The Commission may, while making an order under this Act, issue such directions to any person or authority,

not inconsistent with this Act, as it thinks necessary or desirable, for the proper implementation or execution of the

order, and any person who commits breach of, or fails to comply with, any obligation imposed on him under such

direction, may be ordered by the Commission to be detained in civil prison for a term not exceeding one year unless

in the meantime the Commission directs his release and he shall also be liable to a penalty not exceeding rupees

ten lakhs."

2. Effective date:20th May 2009- notified vide Ministry of Corporate Affairs Notification No S.O.1241(E) dated 15.05.2009.

3. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"sections 27, 28, 31, 32, 33, 42A and 43A of the Act, he shall be punishable with fine"

4. Substituted by Competition (Amendment) Act, 2023, vide Notification No. SO2228(E) dated 18.05.2023, w.e.f.

18.05.2023, for the following:-

"pay the fine imposed under sub-section (2)"

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