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Unit 5: The Competition Act, 2002

of the value of more than US $ 500 millions or turnover more than US $ 1500 millions Notes
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
` 4000 crores or turnover more than ` 12000 crores; or (B) in India or outside India, the
assets of the value of more than US $ two billions or turnover more than six billions US $.

Sec.6, inter alia, provides that no person or enterprise shall enter into a combination which is
likely to cause or causes an appreciable adverse effect on competition within the relevant market
in India. Such a combination, if entered into, shall be void.
Exemption: Any person or enterprise, who or which proposes to enter into a combination, may, at
his or its option, give notice to the commission, disclosing the details of the proposed combination,
within seven days of: (a) approval of the proposal relating to merger or amalgamation referred to
in Sec.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 or acquiring
of control referred to in Sec.5.
Sec.44 provides for penalty for making false statements or omission to furnish material information
by a person, being a party to a combination.

5.5 Competition Commission of India

Establishment of Commission

Sec.7 provides for the establishment of the Competition Commission of India. The Commission
shall be a body corporate by the aforesaid name having perpetual succession and a common seal
with power to acquire, hold and dispose of property. The place of head office of the commission

shall be decided by the Central Government. However, the commission can establish offi ces at
other places in India.

Duties of Commission

Sec.18 provides that it shall be the duty of the Commission to (i) eliminate practices having
adverse effect on competition, (ii) promote and sustain competition, (iii) protect the interests
of consumers and (iv) ensure freedom of trade carried on by other participants, in markets in
India.

Powers and Functions of Commission

With a view to perform the duties as enumerated in Sec.18 above, the Commission is conferred
with certain powers. These are:

1. Inquiring into certain agreements (Sec.19)
2. Inquiring whether an enterprise enjoys dominant position (Sec.19)
3. Inquiring into acquisition, control and combination (Sec.20)
4. Power to grant interim relief (Sec.33)

5. Power to award compensation (Sec.34)
6. Power to regulate its own procedure (Sec.36)
7. Power to review its own orders (Sec.37)

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