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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. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.
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”
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(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
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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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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
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(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.
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(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
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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;
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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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