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NEW PROVISIONS UNDER THE
COMPETITION ACT,2023
GROUP 6
COMPETITION ACT
The Competition Act, 2002 is India’s primary legislation aimed at promoting
fair competition in the market, protecting consumer interests, and
preventing practices that could harm competition. It replaced the Monopolies
and Restrictive Trade Practices (MRTP) Act, 1969, to better address the needs
of a liberalized and globalized economy. The Act led to the establishment of
the Competition Commission of India (CCI), an autonomous regulatory body
responsible for enforcing its provisions.
COMPETITION COMMISSION OF
INDIA – COMPOSITION
1. Structure: Currently consists of one Chairperson and two Members, appointed by the Central
Government.
2. Previous Structure: Previously, it had one Chairperson and between two to six Members;
reduced to streamline approvals and expedite business processes.
3. Eligibility: Chairperson and Members must have 15+ years of experience in fields like law,
economics, trade, or public affairs, or be qualified to serve as a High Court judge.
4. Nature of Positions: Chairperson and Members are full-time positions.

PROVISIONS
The Competition Act, 2002, includes key provisions to maintain fair competition and protect
consumers:
1. Section 3 - Anti-Competitive Agreements
• Horizontal Agreements: Prohibits collusive practices like price-fixing and market division
among competitors.
• Vertical Agreements: Restricts agreements in supply chains (e.g., manufacturer-
distributor) that hinder competition.
2. Section 4 - Abuse of Dominance

• Dominant Position: Defined as a company’s ability to operate independently of market
forces.
• Abusive Practices: Bans unfair pricing, restricted production, market denial, and
predatory pricing by dominant players.
3. Section 5 - Regulation of Combinations

• Regulates mergers, acquisitions, and amalgamations that exceed asset and turnover
thresholds, requiring CCI approval if they could impact competition.
4. Section 6 - Prohibition of Anti-Competitive Combinations

• CCI can review and, if necessary, block or modify combinations to prevent reduced
PROVISIONS
5.Section 19 - Inquiry into Anti-Competitive Practices
• Empowers CCI to investigate based on complaints or observations, defining relevant
product and geographic markets.
6. Section 26 - Procedure for Inquiry

• Details the investigation process, including gathering evidence, hearings, and ordering
probes.
7. Section 27 - Orders After Inquiry

• Allows CCI to impose penalties, modify agreements, and impose fines up to 10% of
average turnover or higher for cartels.
8. Section 32 - Extra-Territorial Jurisdiction

• Extends CCI’s reach to foreign practices that affect competition within India.
9. Section 35 - Power to Engage Experts

• Permits CCI to involve specialists to assist with complex cases.
10. Section 42 - Penalties for Non-Compliance

• Sets fines and other penalties for violating CCI orders.
NEW
PROVISIONS
Recent Changes in India’s Competition Law (Amendments to the Competition Act, 2002)
1.New Merger & Acquisition Threshold (Section 5): Transactions over Rs 2,000 crore now
require approval from the Competition Commission of India (CCI), with the timeline for review
reduced from 210 to 150 days (plus a possible 30-day extension under Section 6).
2.Global Turnover Penalties (Section 27): Penalties are now based on a company’s global
turnover, capped at 10% of total global turnover or up to 30% of relevant turnover/income for
anti-competitive practices.
3.‘Leniency Plus’ Provision (Section 46): Allows additional penalty waivers for companies
disclosing cartels in unrelated markets.
4.Expedited M&A Clearances (Section 6): CCI has a streamlined timeline of 150 days (with
a 30-day conservatory extension) for clearing mergers and acquisitions.
5.Decriminalization of Certain Offenses (Section 42): Certain offenses are decriminalized,
now resulting in civil penalties rather than criminal charges, for non-compliance with CCI
orders and directions related to anti-competitive practices.
GOOGLE LLC VS. CCI
(2018)
1. Reasons for the Case 3. Learnings from the Case
⚬ Market Dominance ⚬ Importance of Fair Search Practices
⚬ Search Bias ⚬ Protection of Consumer Choice
⚬ Restriction on Online Advertisers ⚬ Need for Regulation in Digital Markets
⚬ Consumer Impact ⚬ Global Repercussions
. ⚬ Increased Scrutiny of Digital Markets
2. Case Result : In 2018, the Competition

Commission of India (CCI) ruled against Google for 4. Changes in the Competition Act, 2002 Inspired
abusing its dominant position in the online search by the Case
and advertising market, imposing a fine of INR 1.Penalties for Competition Law Violations
136 crore ($21 million) for favoring its own 2.New Threshold for Acquisitions and Mergers
services and manipulating search results to the 3.Expedition of Clearances of Mergers and
detriment of competitors. Acquisitions
4.Introduction of ‘Leniency Plus’ Provisions
HINDUSTAN COCA-COLA VS. CCI
(2019)
⚬ Exclusive Agreements with Retailers ⚬ Focus on Distribution and Retail Practices
⚬ Limited Consumer Choices ⚬ Strengthening Market Access for
⚬ Impact on Small and New Entrants Competitors
⚬ Potential Abuse of Dominance ⚬ Consumer Choice as a Priority
. ⚬ Setting a Precedent Against Exclusive
Contracts
2. Case Result :
• The CCI ruled against Hindustan Coca-Cola.
• The company was fined and ordered to cease
restrictive trade practices. 4. Changes in the Competition Act, 2002 Inspired
• The ruling reinforced the importance of fair by the Case
competition in distribution networks. 1.Penalties for Competition Law Violations
2.New Threshold for Acquisitions and Mergers
3.Expedition of Clearances of Mergers and
Acquisitions
4.Decriminalization of Certain Offences
AUTOMOBILE MANUFACTURERS CASE
(2014)
⚬ Restricted Access to Spare Parts and ⚬ Importance of Fair Competition in After-
Diagnostic Tools Sales Markets
⚬ Monopolization of After-Sales Service ⚬ Need for Accessibility of Spare Parts and
Market Tools
⚬ Excessive Pricing and Consumer Harm ⚬ Consumer Welfare as a Central Focus
⚬ Barriers for Independent Repairer ⚬ Broad Application of Anti-Competitive
Provisions
2. Case Result : ⚬ Emphasis on Market Access for Small
• The CCI ruled in favor of the complainant, Players
finding the manufacturers guilty of anti-
competitive practices. 4. Changes in the Competition Act, 2002 Inspired
• A penalty of INR 2,554 crore was imposed on by the Case
the 14 manufacturers. 1.Penalties for Competition Law Violations
• The manufacturers were ordered to cease the 2.Introduction of ‘Leniency Plus’ Provisions
restrictive practices and provide access to 3.New Threshold for Acquisitions and Mergers
spare parts, tools, and technical information to 4.Expedition of Clearances of Mergers and
CHALLENGES
• Low Penalty Recovery: Only 0.4% of penalties imposed are recovered, with CCI
facing challenges in appeals.
• FDI Concerns: Global turnover-based penalties may deter multinationals, impacting

FDI.
• Limited CCI Capacity: CCI lacks resources to effectively monitor big tech’s anti-
competitive practices.
• Impact on Emerging Sectors: Strict penalties risk stifling growth in sunrise sectors
like EVs, renewable energy, and defense.
WAY FORWARD
• Revamp CCI Structure: Establish specialized cells and increase technical manpower
for addressing digital anti-competitive practices.
• Separate NCLAT Bench: Create a dedicated NCLAT bench for swift resolution of
competition cases, and use Section 39 of the Competition Act for penalty recovery
post-appeals.
• Global Turnover Fines: Implement multilevel scrutiny, considering factors like

market share and harm caused, before imposing global turnover-based fines.
• Checks and Balances: Introduce mechanisms to prevent misuse of discretionary

powers.
• Support Sunrise Sectors: CCI should balance regulation with support for emerging
sectors to align with ease of doing business.
THANK
YOU
Group 6
B016 - Ankit Jha
B026 - Gobind
Agarwal
B031 - Md Faisal
Haque
B036 - Himanshu
Patil
B046 - Akshay

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NEW PROVISIONS UNDER THE

4. Nature of Positions: Chairperson and Members are full-time positions.

2. Section 4 - Abuse of Dominance

3. Section 5 - Regulation of Combinations

4. Section 6 - Prohibition of Anti-Competitive Combinations

6. Section 26 - Procedure for Inquiry

7. Section 27 - Orders After Inquiry

8. Section 32 - Extra-Territorial Jurisdiction

9. Section 35 - Power to Engage Experts

10. Section 42 - Penalties for Non-Compliance

2. Case Result : In 2018, the Competition

• FDI Concerns: Global turnover-based penalties may deter multinationals, impacting

• Global Turnover Fines: Implement multilevel scrutiny, considering factors like

• Checks and Balances: Introduce mechanisms to prevent misuse of discretionary

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