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Commission’s Power of Enquiry into Combination (Section 20):
1. What the Commission can do:
o If the Competition Commission of India (CCI) learns (on its own or through
information) about a merger, acquisition, or amalgamation (covered under
Section 5), it can check whether this deal has or may have a harmful effect on
competition in India.
2. Time limit:
o The CCI cannot start an inquiry about a combination after one year from the
date the deal took place.
3. When someone notifies the CCI (under Section 6(2)):
o The CCI will check if the deal has or may harm competition in India.
4. Review by Central Government:
o Every two years, the Central Government will review and update the value
thresholds (like asset size, turnover) in Section 5, using factors like inflation or
currency changes.
How the CCI checks if a deal is harmful to competition:
It looks at factors like:
Size of the companies and their market power.
Barriers to entering the market.
Whether prices or profits may rise unfairly.
If enough alternatives are available.
Whether the deal removes important competition.
Innovation, business failure possibility, and economic benefits.
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Here’s a short and simple explanation of the content from the images:
1. Powers of CCI (Competition Commission of India) - Section 19
The Commission can inquire into anti-competitive agreements and dominant positions of
enterprises:
How can CCI start an inquiry?
Suo motu (on its own)
On receiving a complaint or information
On reference by Government or authorities
2. Factors considered for anti-competitive agreements (Section 3)
The CCI checks whether the agreement harms competition by looking at:
(a) Barriers for new companies to enter the market
(b) Pushing out current competitors
(c) Stopping others from entering
(d) If customers benefit or not
(e) Whether it improves production or distribution of goods/services
3. Factors for checking dominant position (Section 4)
While deciding if a company is dominant and misusing its power, CCI looks at:
(a) Market share
(b) Size and resources of the company
(c) Importance of competitors
(d) Economic power (e.g. extra advantages)
(e) Control over supply chain
(f) Dependency of consumers
(g) Whether it got power through special laws or being a government body
(h) Entry barriers (costs, risks, legal issues)
(i) Bargaining power of consumers
(j) Market size and structure
(k) Social obligations and costs
(l) Contribution to economic development
(m) Any other relevant factor
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Here’s a simple and short explanation of the content from both the images:
Section 19 – Powers of CCI (Competition Commission of India):
CCI can start an inquiry:
Suo motu (on its own)
On complaint or information
On reference by government/authority
To check if an agreement affects competition (Section 3):
CCI looks at:
(a) Does it stop new companies from entering?
(b) Does it force existing competitors out?
(c) Does it block market access for others?
(d) Does it harm or benefit consumers?
(e) Does it improve or harm supply of goods/services?
To check if a company is dominant (Section 4):
CCI checks:
(a) Market share of the company
(b) Size and resources
(c) Importance of competitors
(d) Economic power or business edge
(e) Control over supply chain
(f) How much consumers depend on the company
(g) If the dominance is because of law/government support
(h) Entry barriers (legal, financial, technical, etc.)
(i) Bargaining power of buyers
(j) Market structure and size
(k) Social duties or costs
(l) If it contributes to economic development
(m) Any other factor that may affect competition
Let me know if you want this as a table or in Hindi too!
Here’s a simplified and short explanation of the content from your uploaded images related to
the Competition Commission of India (CCI) under the Competition Act, 2002:
Powers & Functions of the Commission (Section 19)
The Commission can investigate certain agreements and cases of dominance:
Suo-motu (on its own)
Based on complaints/information
On reference from government/statutory authority
Factors to Check Adverse Effect on Competition (Section 3)
The Commission checks if an agreement negatively affects competition using factors like:
(a) Barriers for new companies
(b) Driving out existing competitors
(c) Blocking entry of new firms
(d) Benefits to consumers
(e) Better production or distribution
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Factors to Check Dominant Position (Section 4)
To check if a company is dominant, the Commission looks at:
(a) Market share
(b) Size and resources
(c) Competitor importance
(d) Economic power
(e) Integration with supply chains
(f) Consumer dependence
(g) Monopoly from law
(h) Entry barriers
(i) Consumer power
(j) Market size and structure
(k) Social duties
(l) Any economic edge
(m) Any other relevant factor
Conduct of Enquiry (Section 26)
If the Commission receives a reference or info:
1. It checks if a case exists.
2. If no case, it closes the matter.
3. If yes, it asks the Director General (DG) to investigate.
4. DG submits a report:
o If no violation, Commission may accept or ask for more investigation.
o If violation found, Commission starts further inquiry.
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