Taxmann's Competition Act 2002 with Rules

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© Taxmann Price : ` 395 Law stated in this book is as updated till 25th November, 2025 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications.

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Contents COMPETITION ACT, 2002 PAGE

CHAPTER I PRELIMINARY 1. Short title, extent and commencement

2

2. Definitions

3 CHAPTER II

PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT POSITION AND REGULATION OF COMBINATIONS Prohibition of agreements 3. Anti-competitive agreements

12

Prohibition of abuse of dominant position 4. Abuse of dominant position

21

Regulation of combinations 5. Combination

26

6. Regulation of combinations

31

6A. Open offers, etc.

35 CHAPTER III

COMPETITION COMMISSION OF INDIA 7. Establishment of Commission

36

8. Composition of Commission

37 I-5

CONTENTS

I-6 PAGE

9. Selection Committee for Chairperson and Members of Commission

38

10. Term of office of Chairperson and other Members

38

11. Resignation, removal and suspension of Chairperson and other Members

39

12. Restriction on employment of Chairperson and other Members

40

13. Administrative powers of Chairperson

40

14. Salary and allowances and other terms and conditions of services of Chairperson and other Members

41

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

41

16. Appointment of Director General, etc.

41

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

42

CHAPTER IV DUTIES, POWERS AND FUNCTIONS OF COMMISSION 18. Duties and functions of Commission

43

19. Inquiry into certain agreements and dominant position of enterprise

44

20. Inquiry into combination by Commission

48

21. Reference by statutory authority

50

21A. Reference by Commission

51

22. Meetings of Commission

51

23. [Omitted by the Competition (Amendment) Act, 2007, w.e.f.

12-10-2007]

52

24. [Omitted by the Competition (Amendment) Act, 2007, w.e.f.

12-10-2007]

52

25. [Omitted by the Competition (Amendment) Act, 2007, w.e.f.

12-10-2007]

53

26. Procedure for inquiry under section 19

53

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

60

28. Division of enterprise enjoying dominant position

62

29. Procedure for investigation of combinations

63

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

64

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

65

I-7

CONTENTS PAGE

31. Orders of Commission on combinations

65

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

68

33. Power to issue interim orders

68

34. [Omitted by the Competition (Amendment) Act, 2007, w.e.f.

12-10-2007]

69

35. Appearance before Commission

70

36. Power of Commission to regulate its own procedure

70

37. [Omitted by the Competition (Amendment) Act, 2007, w.e.f.

12-10-2007]

73

38. Rectification of orders

73

39. Execution of orders of Commission imposing monetary penalty

73

40. [Omitted by the Competition (Amendment) Act, 2007, w.e.f.

12-10-2007]

74

CHAPTER V DUTIES OF DIRECTOR GENERAL 41. Director General to investigate contraventions

74

CHAPTER VI PENALTIES 42. Contravention of orders of Commission

77

42A. Compensation in case of contravention of orders of Commission

78

43. Penalty for failure to comply with directions of Commission and Director General

78

43A. Power to impose penalty for non-furnishing of information on combination

79

44. Penalty for making false statement or omission to furnish material information

80

45. Penalty for contraventions in relation to furnishing of information

80

46. Power to impose lesser penalty

81

47. Crediting sums realised by way of penalties to Consolidated Fund of India

83

48. Contravention by companies

83

48A. Settlement

84

48B. Commitment

85

48C. Revocation of the settlement or commitment order and penalty

86

CONTENTS

I-8 PAGE

CHAPTER VII COMPETITION ADVOCACY 49. Competition advocacy

86 CHAPTER VIII

FINANCE, ACCOUNTS AND AUDIT 50. Grants by Central Government

87

51. Constitution of fund

87

52. Accounts and audit

87

53. Furnishing of returns, etc., to Central Government

88

CHAPTER VIIIA APPELLATE TRIBUNAL 53A. Appellate Tribunal

88

53B. Appeal to Appellate Tribunal

90

53C. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53D. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53E. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53F. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53G. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53H. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53-I. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53J. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53K. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53L. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53M. [Omitted by the Finance Act, 2017, w.e.f. 26-5-2017]

91

53N. Awarding compensation

91

53-O. Procedure and powers of Appellate Tribunal

94

53P. Execution of orders of Appellate Tribunal

94

53Q. Contravention of orders of Appellate Tribunal

95

53R. [Omitted by Finance Act, 2017, w.e.f. 26-5-2017]

95

53S. Right to legal representation

95

I-9

CONTENTS PAGE

53T. Appeal to Supreme Court

96

53U. Power to punish for contempt

96

CHAPTER IX MISCELLANEOUS 54. Power to exempt

96

55. Power of Central Government to issue directions

97

56. Power of Central Government to supersede Commission

97

57. Restriction on disclosure of information

98

58. Chairperson, Members, Director General, Secretary, officers and other employees, etc., to be public servants

99

59. Protection of action taken in good faith

99

59A. Compounding of certain offences

99

60. Act to have overriding effect

99

61. Exclusion of jurisdiction of civil courts

100

62. Application of other laws not barred

100

63. Power to make rules

101

64. Power to make regulations

104

64A. Process of issuing regulations

105

64B. Commission to issue guidelines

106

65. Power to remove difficulties

106

66. Repeal and saving

107

SUBJECT INDEX

113

COMPETITION COMMISSION OF INDIA (DETERMINATION OF COST OF PRODUCTION) REGULATIONS, 2009 1. Short title and commencement

119

2. Definitions

119

3. Determination of cost

120

4. Engagement of experts

120

5. Request for confidentiality

120

6. Removal of difficulty

120

CONTENTS

I-10 PAGE

COMPETITION COMMISSION OF INDIA (RETURN ON MEASURES FOR THE PROMOTION OF COMPETITION ADVOCACY, AWARENESS AND TRAINING ON COMPETITION ISSUES) RULES, 2008 1. Short title and commencement

121

2. Definitions

121

3. Preparation and furnishing of the Return on Measures

121

SCHEDULE : Form of the Return on Measures on Competition Advocacy and Annexures

122

COMPETITION COMMISSION OF INDIA (MANNER OF RECOVERY OF MONETARY PENALTY) REGULATIONS, 2025 1. Short title and Commencement

124

2. Definitions

124

3. Issuance of demand notice

125

4. Extension of time and grant of instalments

126

5. Interest on penalty

126

6. Issuance of recovery certificate

126

7. Functions of Recovery Officer

127

8. Maintenance of Penalty Recovery Register

127

9. Modes of Recovery

127

10. Other modes of Recovery

129

11. Reference by the Commission to the Income-tax authority

129

12. Intimation of recovery by Income-tax authority

129

13. Monitoring and supervision in proceedings of recovery of penalty

129

14. Refund of excess penalty

130

15. Power to determine procedure in certain circumstances

130

16. Removal of difficulties

130

17. Repeal and Savings

130

FORM I : Demand Notice

131

I-11

CONTENTS

PAGE

FORM II : Challan to be filled in quadruplicate for Bank/PAO/CCI/ Depositor

132

FORM III : Recovery Certificate

133

FORM IV : Penalty Recovery Register

134

FORM V : Reference to the Income-tax Authority

135

COMPETITION APPELLATE TRIBUNAL (FORM AND FEE FOR FILING AN APPEAL AND FEE FOR FILING COMPENSATION APPLICATIONS) RULES, 2009 1. Short title and commencement

136

2. Definitions

136

3. Form and verification while filing an appeal

137

4. Fee

137

5. Powers to relax

138

FORM : Memorandum of appeal preferred under sub-sections (1) and (2) of section 53B of the Competition Act, 2002

138

COMPETITION COMMISSION OF INDIA (PROCEDURE FOR ENGAGEMENT OF EXPERTS AND PROFESSIONALS) REGULATIONS, 2009 1. Short title and commencement

142

2. Definitions

142

3. Engagement of experts and young professionals

143

4. Functions of experts and young professionals

143

5. Qualifications, experience and classification of experts and young professionals

143

6. Remuneration payable to experts and young professionals

143

7. Evaluation of performance

144

8. Procedure of selection of experts and young professionals

144

9. Terms and condition of engagement of experts and young professionals

145

10. Power to relax

146

CONTENTS

I-12 PAGE

11. Removal of difficulties

146

SCHEDULE I

146

SCHEDULE II

150

SCHEDULE III

150

COMPETITION COMMISSION OF INDIA (FORM OF ANNUAL STATEMENT OF ACCOUNTS) RULES, 2009 1. Short title and commencement

151

2. Definitions

151

3. Forms of Financial Statements

151

4. Incurring of Expenditure by the Commission

152

5. Annual Statement of Accounts

152

6. Maintenance of Accounts etc.

152

SCHEDULE I : Fund

155

SCHEDULE II : Reserves and Surplus

155

SCHEDULE III : Earmarked/endowment funds

156

SCHEDULE IV : Secured loans and borrowings

157

SCHEDULE V : Unsecured loans and borrowings

157

SCHEDULE VI : Deferred credit liabilities

158

SCHEDULE VII : Current liabilities and provisions

158

SCHEDULE VIII : Fixed asset

159

SCHEDULE IX : Investments from Earmarked/Endowment Funds

160

SCHEDULE X : Investments - others

160

SCHEDULE XI : Current Assets, Loans, Advances Etc.

160

SCHEDULE XII : Grants/subsidies

161

SCHEDULE XIII : Fees/subscriptions

162

SCHEDULE XIV : Income from investments

162

SCHEDULE XV : Income From Royalty, Publication etc.

162

SCHEDULE XVI : Interest earned

163

SCHEDULE XVII : Other income

163

SCHEDULE XVIII : Establishment Expenses

163

SCHEDULE XIX : Other administrative expenses

164

I-13

CONTENTS

PAGE

SCHEDULE XX : Expenditure on Grants, Subsidies etc.

165

SCHEDULE XXI : Interest

165

SCHEDULE XXII : Significant accounting policies (Illustrative)

165

SCHEDULE XXIII : Contingent liabilities and notes on accounts (Illustrative)

166

COMPETITION COMMISSION OF INDIA (FORM AND TIME OF PREPARATION OF ANNUAL REPORT) RULES, 2008 1. Short title and commencement

168

2. Definitions

168

3. Preparation and furnishing of the Annual Report

168

SCHEDULE : Form of the Annual Report

169

COMPETITION APPELLATE TRIBUNAL (TERM OF THE SELECTION COMMITTEE AND THE MANNER OF SELECTION OF PANEL OF NAMES) RULES, 2008 1. Short title and commencement

175

2. Definition

175

3. Term of the Committee

175

4. Manner of selection of a Panel of Names

175

5. Functions of Committee

176

COMPETITION APPELLATE TRIBUNAL (SALARIES AND ALLOWANCES AND OTHER TERMS AND CONDITIONS OF SERVICE OF THE CHAIRPERSON AND OTHER MEMBERS) RULES, 2009 1. Short title and Commencement

177

2. Definitions

177

3. Salary, allowances, etc., of the Chairperson

178

4.

178

Other conditions of service of Chairperson

CONTENTS

I-14 PAGE

5. Salary of Member

178

6. Dearness allowance and other allowances

179

7. Leave

179

8. Leave sanctioning authority

179

9. Pension

180

10. Travelling allowance

180

11. Leave travel concession

180

12. Facilities of medical treatment

180

13. Transport

180

14. Accommodation

181

15. Official visits abroad

181

16. Applicability of rules

181

17. Oath of office and secrecy

182

18. Declaration of financial or other interest

182

19. Residuary provisions

182

20. Powers to relax

182

FORM I:

Form of oath of office for Chairperson or Members of the Competition Appellate Tribunal

182

FORM II:

Form of oath of secrecy for Chairperson or Members of the Competition Appellate Tribunal

183

FORM III: Declaration against acquisition of any adverse financial or other interest

183

COMPETITION COMMISSION OF INDIA (TERM OF THE SELECTION COMMITTEE AND THE MANNER OF SELECTION OF PANEL OF NAMES) RULES, 2008 1. Short title and commencement

184

2. Definitions

184

3. Term of the Committee

184

4. Manner of Selection of a panel of names

185

5. Functions of Committee

185

I-15

CONTENTS PAGE

COMPETITION COMMISSION OF INDIA (SELECTION OF CHAIRPERSON AND OTHER MEMBERS OF THE COMMISSION) RULES, 2003 1. Short title and commencement

186

2. Definitions

186

3. Constitution of committee

186

4. Functions of Committee

187

5. Vacancy etc., not to invalidate proceedings of the Committee

187

COMPETITION COMMISSION OF INDIA (SALARY, ALLOWANCES AND OTHER TERMS AND CONDITIONS OF SERVICE OF CHAIRPERSON AND OTHER MEMBERS) RULES, 2003 1. Short title and commencement

188

2. Definitions

188

3. Pay

188

4. New Pension Scheme

189

5. [Omitted by the Competition Commission of India (Salary, Allowances and other Terms and Conditions of Service of Chairperson and other Members) Amendment Rules, 2009, w.e.f. 27-2-2009]

189

6. Leave

189

7. Travelling and Daily Allowances

190

8. Official visits abroad

190

9. Leave Travel Concession

190

10. [Omitted by the Competition Commission of India (Salary, Allowances, and other Terms and Conditions of Service of Chairperson and other Members) Amendment Rules, 2009, w.e.f. 27-2-2009]

190

11. Facility for Medical Treatment

190

12. Other Conditions of Service

190

CONTENTS

I-16 PAGE

COMPETITION COMMISSION OF INDIA (OATH OF OFFICE AND OF SECRECY FOR CHAIRPERSON AND OTHER MEMBERS) RULES, 2003 1. Short title and commencement

191

2. Definitions

191

3. Oath of office and of secrecy

191

SCHEDULE

192

FORM I : Form of Oath of Office for Chairperson/Members of the Competition Commission of India

192

FORM II : Form of Oath of Secrecy for Chairperson/Members of the Competition Commission of India

192

COMPETITION COMMISSION OF INDIA (COMBINATIONS) REGULATIONS, 2024 1. Short title and commencement

193

2. Definitions

193

3. Power to determine procedure in certain circumstances

194

4. Value of transaction and substantial business operations in India

194

5. Form of notice for the proposed combination

196

6. Exercise of rights in case of open offer and acquisitions on stock exchanges

197

7. Request for confidentiality

197

8. Failure to file notice

198

9. Obligation to file the notice

198

10. Obligation to pay the fee

199

11. Amount of Fee

199

12. Mode of payment

199

13. Procedure for filing notice

199

14. Scrutiny of notice and inquiry

200

15. Intimation of any change

201

16. Withdrawal and re-filing of notice

202

I-17

CONTENTS PAGE

17. Termination of proceedings

202

18. Mode of service of notice(s), etc.

202

19. Calling for a report from the Director General

202

20. Report by the Director General

202

21. Publication of the details of the combination

203

22. Proof of publication

203

23. Appearance of the parties before the Commission

203

24. Statement of Objections

203

25. Modification to the proposed combination

204

26. Compliance by the parties for carrying out modification

204

27. Appointment of independent agencies to oversee modification

205

28. Orders of the Commission

205

29. Overriding effect

205

30. Cooperation with other agencies or statutory authorities

205

31. Removal of difficulty

205

32. Power to Issue directions

205

33. Repeal and Savings

205

34. Transition Provision

206

SCHEDULE I

206

SCHEDULE II

219

SCHEDULE III

219

COMPETITION APPELLATE TRIBUNAL (PROCEDURE) REGULATIONS, 2011 1. Short title and commencement

220

2. Definitions

220

3. Language of Tribunal

221

4. Sittings of Tribunal

221

5. Official seal of Tribunal

221

6. Functions of Registrar

221

7. Registration of appeal or application

222

8. Pleadings before Tribunal

222

9. Service of notice or other documents

222

10. Adjournment of hearings

222

CONTENTS

I-18 PAGE

11. Ex parte hearings

222

12. Custody of records

222

13. Inspection and certified copies of documents and other papers

223

14. Order of judgment of Tribunal

223

15. Rectification of errors

223

16. Interpretation

223

COMPETITION COMMISSION OF INDIA (LESSER PENALTY) REGULATIONS, 2024 1. Short title and commencement

224

2. Definitions

224

3. Conditions for Lesser Penalty or Lesser Penalty Plus

225

4. Grant of Lesser Penalty

226

5. Grant of Lesser Penalty Plus

227

6. Procedure for Grant of Lesser Penalty

228

7. Procedure for Grant of Lesser Penalty Plus

229

8. Confidentiality

230

9. Inspection and Certified Copies of Documents

230

10. Withdrawal

231

11. Removal of Difficulty

231

12. Repeal and Savings

231

SCHEDULE I

231

SCHEDULE II

232

COMPETITION COMMISSION OF INDIA (DETERMINATION OF MONETARY PENALTY) GUIDELINES, 2024 CHAPTER I PRELIMINARY 1. Short title and commencement

233

2. Definitions

233

I-19

CONTENTS PAGE

CHAPTER II METHODOLOGY FOR DETERMINATION OF PENALTY FOR ENTERPRISES UNDER SECTION 27(b) OF THE ACT 3.

234 CHAPTER III METHODOLOGY FOR DETERMINATION OF PENALTY UNDER PROVISO TO SECTION 27(b) OF THE ACT

4.

235 CHAPTER IV METHODOLOGY FOR DETERMINATION OF PENALTY FOR PERSONS LIABLE UNDER SECTION 48 OF THE ACT

5.

236 CHAPTER V METHODOLOGY FOR DETERMINATION OF MONETARY PENALTY UNDER SECTION 43A OF THE ACT

6.

236 CHAPTER VI METHODOLOGY FOR DETERMINATION OF MONETARY PENALTY UNDER SECTIONS 42, 43, 44 AND 45 OF THE ACT

7.

237 CHAPTER VII RESIDUARY POWERS OF THE COMMISSION

8.

237

COMPETITION (MINIMUM VALUE OF ASSETS OR TURNOVER) RULES, 2024 1. Short title and commencement

239

2. Definitions

239

3. Minimum value of assets and turnover

239

CONTENTS

I-20 PAGE

COMPETITION (CRITERIA OF COMBINATION) RULES, 2024 1. Short title and commencement

240

2. Definitions

240

3. Criteria of Combination

240

COMPETITION (CRITERIA FOR EXEMPTION OF COMBINATIONS) RULES, 2024 1. Short title and commencement

242

2. Definitions

242

3. Criteria for exemption of categories of Combinations

242

SCHEDULE : Criteria for Exemption

242

COMPETITION COMMISSION OF INDIA (GENERAL) REGULATIONS, 2024 1. Short title and commencement

246

2. Definitions

246

3. Powers to determine procedure in certain circumstances

247

4. Seal and emblem

248

5. Language of the Commission

248

6. Filing of documents in Hindi

248

7. Translation of documents

248

8. Holidays to be observed by the Commission

248

9. Computation of time

248

10. Contents of information or the reference

248

11. Signing of information or reference

249

12. Procedure for filing of information or reference

250

13. Procedure for filing of information or reference in electronic form

250

14. Filing of further submissions

251

15. Powers and functions of the Secretary

251

16. Procedure for scrutiny of information or reference

253

I-21

CONTENTS PAGE

17. Opinion on existence of prima facie case

254

18. Preliminary conference

254

19. Issue of direction to cause investigation on prima facie case

255

20. Communication of order passed under section 26(2) or 26(2A) of the Act

255

21. Investigation by Director General

255

22. Procedure for inquiry under section 26 of the Act

256

23. Mode of service of notice, etc.

258

24. Filings before Commission

258

25. Power of Commission to join or substitute parties in proceedings

259

26. Power of Commission to permit a person or enterprise to take part in proceedings

259

27. Power to strike out unnecessary party

260

28. Power of Commission to join multiple information

260

29. Amendment of information

260

30. Manner of making submissions or arguments by parties before Commission

261

31. Power of the Commission to continue proceedings in absence of party

261

32. Interim order

261

33. Final order

261

34. Reference from statutory authority or the Central Government or a State Government

262

35. Reference by the Commission to statutory authority for opinion

263

36. Confidentiality

263

37. Compliance of orders of Commission

267

38. Inspection and certified copies of documents

267

39. Continuation of proceedings after death of a party or adjudication of a party as insolvent

267

40. Effect of non-compliance

267

41. Taking of evidence

268

42. Supporting of facts by filing of affidavit

270

43. Production of additional evidence before Commission

270

44. Power of Commission to call for information etc.

271

45. Power of Commission or Director General to issue commissions for examination of witnesses or documents

271

CONTENTS

I-22 PAGE

46. Authorizing a representative to appear

273

47. Authorizing an Advocate to accompany any person summoned by the Director General

273

48. Proceedings before Commission not to be open to public

274

49. Procedure for imposition of penalty under the Act

274

50. Fee under clause (a) of sub-section (1) of section 19 of the Act

274

51. Inspection and copying fees

276

52. Empanelment of special counsel by Commission

276

53. Inviting experts of eminence to assist Commission

276

54. Implementation and monitoring of orders passed by the Commission

276

55. Publication

277

56. Removal of difficulty

277

57. Repeal and Savings

278

ANNEXURE

278

Competition Act, 20021 [12 OF 2003] 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 :—

1. S.O. 340(E), dated 31-3-2003 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003), the Central Government hereby appoints the 31st March, 2003, as the date on which the following sections of the said Act, shall come into force, namely :— (1) Section 1; (2) Clauses (d), (g), (j), (k), (l) and (n) of section 2; (3) Section 8; (4) Section 9; (5) Section 10; (6) Section 14; (7) Section 16; (8) Section 17; (9) Sub-section (1) of section 63; and (10) Clauses (a), (b), (d), (e), (f) and (g) of sub-section (2) of section 63.

S.O. 715(E), dated 19-6-2003 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003), the Central Government hereby appoints the 19th June, 2003, as the date on which the following sections of the said Act, shall come into force, namely :— (1) Section 2 except clauses (d), (g), (j), (k), (l) and (n); (2) Section 7; (3) Section 11; (4) Section 12; (5) Section 13; (6) Section 15; (7) Section 22; (8) Section 23; (9) Section 36; (10) Section 49; (11) Section 50; (12) Section 51; (13) Section 52; (14) Section 53; (15) Section 54; (16) Section 55; (17) Section 56; (18) Section 57; (19) Section 58; (20) Section 59; (21) Section 60; (22) Section 61; (23) Section 62; (24) Section 63(2) except clauses (a), (b), (d), (e), (f), (g) and (n) of sub-section (2); (25) Section 64; (26) Section 65.

S.O. 1241(E), dated 15-5-2009 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003), the Central Government hereby appoints the 20th May, 2009, as the date on which sections 3, 4, 18, 19, 21, 26, 27, 28, 32, 33, 35, 38, 39, 41, 42, 43, 45, 46, 47, 48, 54, 55 and 56 of the said Act, shall come into force.

S.O. 1242(E), dated 15-5-2009 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2007 (39 of 2007), the Central Government hereby appoints the 20th day of May, 2009, as the date on which sections 3, 10, 13, 15, 16, 19, 20, 21, 25, 26, 28, 31, 33, 34, 35, 36, 38, 39 and 43 (53B, 53N, 53-O, 53P, 53Q, 53R, 53S, 53T and 53U) of the said Act, shall come into force.

S.O. 2204(E), dated 28-8-2009 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003) and sub-section (2) of section 1 of the Competition (Amendment) Act, 2007 (39 of 2007), the Central Government hereby appoints the 1st day of September, 2009 as the date on which section 66 of the said Act and section 50 of the said Amendment Act shall come into force.

(Contd. on page 2)

1

S. 1

COMPETITION ACT, 2002

2

CHAPTER I PRELIMINARY Short title, extent and commencement.

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

2

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

(Contd. from page 1)

S.O. 479(E), dated 4-3-2011 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003), the Central Government hereby appoints the 1st day of June, 2011 as the date on which sections 5, 6, 20, 29, 30 and section 31 of the said Act shall come into force.

S.O. 1230(E), dated 30-5-2011 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003), the Central Government hereby appoints the 1st day of June, 2011 as the date on which section 43A of the said Act [inserted by section 37 of the Competition (Amendment) Act, 2007 (39 of 2007)] shall come into force.

S.O. 1231(E), dated 30-5-2011 - In exercise of the powers conferred by sub-section (3) of section 1 of the Competition Act, 2002 (12 of 2003), the Central Government hereby appoints the 1st day of June, 2011 as the date on which section 44 of the said Act shall come into force.

S.O. 2228(E), dated 18-5-2023 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 18th day of May, 2023 as the date on which the provisions of the following sections of the said Act shall come into force, namely:—

Sections 1 to 5 (both inclusive); Sections 9 to 11 (both inclusive); Sections 13 to 18 (both inclusive); Section 19 [except clause (f)]; Sections 25 to 27 (both inclusive); Section 29; Sections 31 to 32 (both inclusive); Sections 36 and 37; Section 39; Sections 41 to 44 (both inclusive); Section 45 (except 64B).

S.O. 3199(E), dated 18-7-2023 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 18th July, 2023 as the date on which the provision of section 12 of the said Act shall come into force.

S.O. 4672(E), dated 26-10-2023 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 26th October, 2023 as the date on which section 45, insofar as it relates to section 64B and the entries relating thereto, of the said Act shall come into force.

S.O. 740(E), dated 19-2-2024 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 20th day of February, 2024 as the date on which the provisions of section 33 of the said Act shall come into force.

S.O. 1065(E), dated 5-3-2024 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 6th day of March, 2024 as the date on which the provisions of sections 20, 35 and 40 of the said Act shall come into force.

S.O. 3846(E), dated 9-9-2024 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 10th day of September, 2024 as the date on which the provisions of the following sections of the said Act shall come into force, namely:— (1) sections 6 to 8 (both inclusive); (2) sections 21 to 24 (both inclusive); (3) section 28; (4) section 30; (5) section 34; and (6) section 38.

S.O. 4031(E), dated 19-9-2024 - In exercise of the powers conferred by sub-section (2) of section 1 of the Competition (Amendment) Act, 2023 (9 of 2023), the Central Government hereby appoints the 19th day of September, 2024 as the date on which the provisions of clause (f) of section 19 of the said Act shall come into force.

2. Enforced with effect from 31-3-2003. *Now “Union Territory”

3

COMPETITION ACT, 2002

S. 2

(3) It shall come into force on such date 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.

COMMENTS CASE LAWS

Even though Act is not retrospective, yet it would cover all agreement covered by Act, though entered into prior to commencement of Act - Kingfisher Airlines Ltd. v. Competition Commission of India [2011] 12 taxmann.com 285/108 SCL 621/100 CLA 190 (Bom.)

Definitions.

2. In this Act, unless the context otherwise requires,— 3 (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; 3

(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;

4

[(ba) “Appellate Tribunal” means the National Company Law Appellate Tribunal referred to in sub-section (1) of section 53A;] (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;

5

6

(d) “Chairperson” means the Chairperson of the Commission appointed under sub-section (1) of section 9; (e) “Commission” means the Competition Commission of India established under sub-section (1) of section 7;

5

3. Enforced with effect from 19-6-2003.

4. Substituted by the Finance Act, 2017, w.e.f. 26-5-2017. Prior to its substitution, clause (ba), as inserted by the Competition (Amendment) Act, 2007, w.e.f. 12-10-2007, read as under : ‘(ba) “Appellate Tribunal” means the Competition Appellate Tribunal established under sub-section (1) of section 53A;’ 5. Enforced with effect from 19-6-2003.

6. Enforced with effect from 31-3-2003.

S. 2

COMPETITION ACT, 2002

4

[(ea) “commitment” means the commitment referred to in section 48B;]

7

(f) “consumer” means any person who—

7a

(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; (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;

7b

(h) “enterprise” means 8[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].

7b

7. Inserted by the Competition (Amendment) Act, 2023, w.e.f. 18-5-2023.

7a. Enforced with effect from 19-6-2003.

7b. Enforced with effect from 31-3-2003.

8. Substituted for “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” by the Competition (Amendment) Act, 2023, w.e.f.

18-5-2023.

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S. 2

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; 9

(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; (j) “Member” means a Member of the Commission appointed under subsection (1) of section 9 and includes the Chairperson;

10

(k) “notification” means a notification published in the Official Gazette;

10 11

[(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;] (l) “person” includes—

10

(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 12[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; 9.

10.

11.

12.

Enforced with effect from 19-6-2003.

Enforced with effect from 31-3-2003.

Inserted by the Competition (Amendment) Act, 2023, w.e.f. 18-5-2023.

Substituted for “section 617 of the Companies Act, 1956 (1 of 1956)” by the Competition (Amendment) Act, 2023, w.e.f. 18-5-2023.

S. 2

COMPETITION ACT, 2002

6

(viii) a co-operative society registered under any law relating to co-operative societies; (ix) a local authority; (x) every artificial juridical person, not falling within any of the preceding sub-clauses; (m) “practice” includes any practice relating to the carrying on of any trade by a person or an enterprise;

13

(n) “prescribed” means prescribed by rules made under this Act;

14

(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;

13

[(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;]

15

(q) “regulations” means the regulations made by the Commission under section 62;

13

(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;

13

(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;

13

[(t) “relevant product market” means a market comprising of all those products or services—

16

(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

13. Enforced with effect from 19-6-2003.

14. Enforced with effect from 31-3-2003.

15. Substituted by the Competition (Amendment) Act, 2023, w.e.f. 18-5-2023. Prior to its substitution, clause (p) read as under: ‘*(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;’ *Enforced with effect from 19-6-2003.

16. Substituted by the Competition (Amendment) Act, 2023, w.e.f. 18-5-2023. Prior to its substitution, clause (t) read as under : ‘*(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;’ *Enforced with effect from 19-6-2003.

7

COMPETITION ACT, 2002

S. 2

(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;] (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;

17

18

[(ua) “settlement” means the settlement referred to in section 48A;] 17

(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;

(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 therefor or any matter connected therewith or incidental thereto;

17

17

(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;

17

(y) “turnover” includes value of sale of goods or services; (z) words and expressions used but not defined in this Act and defined in the 19[Companies Act, 2013 (18 of 2013)] shall have the same meanings respectively assigned to them in that Act.

17

COMMENTS SECTION NOTES

2.1 Acquisition [Section 2(a)] “Acquisition” means acquiring or agreeing to acquire— (i) shares, voting rights or assets of any enterprise; or

17. Enforced with effect from 19-6-2003.

18. Inserted by the Competition (Amendment) Act, 2023, w.e.f. 18-5-2023.

19. Substituted for “Companies Act, 1956 (1 of 1956)”, ibid.

S. 2

COMPETITION ACT, 2002

8

(ii) control over management, or (iii) control over assets of any enterprise; 2.2 Agreement [Section 2(b)] (A) Section 2(b) defines the term “agreement” inclusively.

(B) The term, as defined, includes: Any arrangement; Any understanding, or Any action in concert.

(C) Such arrangement, understanding or action may or may not be formal or in writing.

(D) Such arrangement, understanding or action may or may not be intended to be enforceable by legal proceedings.

As the definition is inclusive, the ordinary meaning of the word “agreement” cannot be excluded.

In terms of section 2 (e) of the Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an ‘agreement’. The essence of an agreement, in terms of section 14 of the Indian Contract Act, 1872, is consensus ad idem.

Consensus ad idem means that all the parties agree upon the same thing in the same sense.

The essential ingredients of an agreement are: (a) Two or more parties; (b) Consensus ad item among the parties; (c) Consideration; (d) Whether intended to be legally enforceable or not; (e) Whether formal or informal; and (f) Whether in writing or not.

It would appear that any arrangement, understanding or concert should also have the above 6 elements.

2.3 Cartel [Section 2(c)] Section 2(c) gives an inclusive definition of “cartel”. Since the definition is inclusive, it does not exclude the ordinary meaning of cartel. For the ordinary meaning, it is useful to consider the following definitions given in dictionaries: A cartel is an association of similar companies or businesses that have grouped together

in order to prevent competition and to control prices. [Collins Dictionary] Cartels form from agreements among producers to control supply or manipulate prices,

impacting markets by restricting competition and raising prices. While they aim to benefit members, cartels often harm consumers. Cartels reduce competition by engaging in practices like price-fixing, market allocation, and bid-rigging. [Investopedia] A cartel is an anti-competitive agreement, anti-competitive concerted practice, or

anti-competitive arrangement by competitors to fix prices, make rigged bids (collusive tenders), establish output restrictions or quotas, or share or divide markets by allocating customers, suppliers, territories, or lines of commerce. [Lexis Nexis] In terms of the inclusive definition in section 2(c), the following are the ingredients of a “cartel”: It is an association of producers, sellers, distributors, traders or service providers.

Members of the association, 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;

9

COMPETITION ACT, 2002

S. 2

2.4 Consumer [Section 2(f)] (A) The term “consumer” is defined to mean the following: (a) Any person who buys any goods for a consideration, whether such purchase of goods is for resale or for any commercial purpose or for personal use; (b) Any user of such goods other than the person in (a) above who uses the goods with the approval of such person; (c) Any person who hires or avails of any service for a consideration, whether such hiring or availing of services is for any commercial purpose or for personal use; and (d) Any beneficiary of service other than the person in (c) above, when such services are availed by the beneficiary with the approval of such person.

(B) Consideration for goods/services may be paid or promised or partly paid and partly promised, or payable under any system of deferred payment 2.5 Enterprise [Section 2(h)] The term “enterprise” means 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.

It does not matter whether such engagement is either directly or through one or more

of its units or divisions or subsidiaries.

The term “enterprise” 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.

2.6 Goods [Section 2(i)] “Goods” means goods as defined in the Sale of Goods Act, 1930.

The term “goods” 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; 2.7 Relevant Market [Section 2(r)] “Relevant market” means the market determined by the Competition Commission of

India (CCI) with reference to the relevant product market or to the relevant geographic market or to both the markets.

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”. [Section 19(5)] 2.8 Relevant Geographic Market [Section 2(s)] “Relevant geographic market” means:

COMPETITION ACT 2002 WITH RULES – BARE ACT WITH SECTION NOTES AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE

: : : : : : :

TAXMANN'S EDITORIAL BOARD TAXMANN DECEMBER 2025 2026 EDITION 9789371262910 300 PAPERBACK

Rs.395

DESCRIPTION Competition Act 2002 with Rules [Bare Act with Section Notes] by Taxmann provides the complete, updated statutory framework governing anti-competitive agreements, abuse of dominance, regulation of combinations, and the functioning of the Competition Commission of India (CCI). The Edition integrates the Act with the relevant Rules, Regulations, and procedural mechanisms, supported by clear section-wise notes that explain statutory intent, simplify legal terminology, and aid precise interpretation. It serves as a dependable, practitioner-oriented reference for understanding and applying India's competition law regime.

This publication is structured to benefit a broad spectrum of legal, regulatory, and commercial stakeholders, including: • Advocates, Law Firms & Litigation Counsels • Corporate Legal Teams, In-House Counsels & Compliance Officers • Economists, Corporate Strategists & Transaction Advisors • Regulators, Enforcement Officers & Government Authorities • Academicians, Researchers & Law Students The Present Publication is the 2026 Edition, covering the amended and updated text of the Competition Act [Act No. 12 of 2003] and Rules, with the following noteworthy features: • [Complete Legislative Text] Updated Act with all relevant Rules and procedural frameworks • [Section Notes] Concise, practical notes explaining purpose, scope, and application • [Compliance-focused Format] Enables quick referencing for corporates and practitioners • [Enforcement Coverage] Includes investigation processes, penalties, and leniency mechanisms • [User-friendly Structure] Clear headings, organised sections, and accessible layout • [Updated Amendments] Reflects the latest legislative and policy changes • [Pre-amendment Provisions] Footnotes include earlier text for understanding historical applicability

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