Prohibition of agreements
3. Anti-competitive agreements.—(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 sub-section (1) 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.
1. Ins. by Act 9 of 2023, s. 3 (w.e.f. 18-5-2023).
2. Subs. by s. 2, ibid., for “the Companies Act, 1956 (1 of 1956)” (w.e.f. 18-5-2023).
8
1
[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) 2
[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 3
[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.
4
[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,—
5
[(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 goods 6
[or services] or allocate any area or market for the disposal or sale of
the goods 6
[or services];
(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 goods 6
[or services] are sold or from whom goods
6
[or services] are bought;
(e) “resale price maintenance”
7
[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—
1. Ins. by Act 9 of 2023, s. 4 (w.e.f. 18-5-2023).
2. Subs. by s. 4, ibid., for “Any agreement amongst enterprises or persons” (w.e.f. 18-5-2023).
3. Subs. by s. 4, for “supply” (w.e.f. 18-5-2023).
4. Ins. by s. 4, ibid. (w.e.f. 18-5-2023).
5. Subs. by s. 4, ibid., for clauses (a) and (b) (w.e.f. 18-5-2023).
6. Ins. by s. 4, ibid. (w.e.f. 18-5-2023).
7. Subs. by s. 4, ibid., for “includes any agreement to sell goods on condition” (w.e.f. 18-5-2023).
9
(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);
1
[(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.
Prohibition of abuse of dominant position
4. Abuse of dominant position.—2
[(1) No enterprise or group shall abuse its dominant position.]
(2) There shall be an abuse of dominant position 3
[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 4
[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 therefor; 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 5
[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;
1. Ins. by Act 9 of 2023, s. 4 (w.e.f. 18-5-2023).
2. Subs. by Act 39 of 2007, s. 3, for sub-section (1) (w.e.f. 20-5-2009).
3. Subs. by s. 3, ibid., for “under sub-section (1), if an enterprise” (w.e.f. 20-5-2009).
4. Subs. by Act 9 of 2023, s. 5, for “discriminatory condition or price” (w.e.f. 18-5-2023).
5. Ins. by Act 39 of 2007, s. 3 (w.e.f. 20-5-2009).
10
(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;
1
[(c) “group” shall have the same meaning as assigned to it in clause (b) of the Explanation to
section 5.]
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
2
[(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
3
[(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 crores in India, or turnover more than six
billion US dollars; or, 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
4
[(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
5
[(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]
1. Ins. by Act 39 of 2007, s. 3 (w.e.f. 20-5-2009).
2. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011).
3. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011).
4. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011).
5. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011).
11
(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
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 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
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 3
[India; or]]
4
[(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.]
5
[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
1. Subs. by Act 39 of 2007, s. 4, for Item (B) (w.e.f. 1-6-2011).
2. Subs. by s. 4, ibid., for Item (B) (w.e.f. 1-6-2011).
3. Subs. by Act 9 of 2023, s. 6, for “India.” (w.e.f. 10-9-2024).
4. Ins. by s. 6, ibid. (w.e.f. 10-9-2024).
5. Subs. by s. 6, ibid., for the Explanation (w.e.f. 10-9-2024).
12
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.]
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, 2
[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)
3
[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) 3
[and
clause (d)] of section 5 or acquiring of control referred to in clause (b) of that section.
3
[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.]
4
[(2A) No combination shall come into effect until 5
[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.]
1. Subs. by Act 39 of 2007, s. 5, for “may, at his or its option,” (w.e.f. 1-6-2011).
2. Subs. by Act 9 of 2023, s. 7, for “within thirty days of” (w.e.f. 10-9-2024).
3. Ins. by s. 7, ibid. (w.e.f. 10-9-2024).
4. Ins. by Act 39 of 2007, s. 5 (w.e.f. 1-6-2011).
5. Subs. by Act 9 of 2023, s. 7, for “two hundred and ten days” (w.e.f. 10-9-2024).
13
(3) The Commission shall, after receipt of notice under sub-section (2), deal with such notice in
accordance with the provisions contained in 1
[sections 29, 29A, 30 and 31.]
2
[(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 subsection 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).]
3
[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—
1. Subs. by Act 9 of 2023, s. 7, for “sections 29, 30 and 31” (w.e.f. 10-9-2024).
2. Subs. by s. 7, ibid., for sub-sections (4) and (5) and the Explanation (w.e.f. 10-9-2024)
3. Ins. by s. 8, ibid. (w.e.f. 10-9-2024).
14
(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).]