Competition law in India rests on the Competition Act, 2002, as amended in 2023. It prohibits anti-competitive agreements and the abuse of a dominant position, and requires notice of combinations above set thresholds. The Competition Commission of India (CCI) investigates and decides, and since the 2023 amendment its maximum penalties are measured against global turnover, not only Indian revenue.
Anti-competitive agreements and abuse of dominance
Under Section 3, agreements between competitors that fix prices, limit output, share markets or rig bids are presumed to have an appreciable adverse effect on competition. The 2023 amendment extends that presumption to a party that is not a competitor but takes part in furthering the agreement, such as the hub in a hub-and-spoke arrangement. Vertical arrangements, including exclusive supply and distribution, tie-ins, refusal to deal and resale price maintenance, are judged by their actual or likely effect on competition.
Section 4 prohibits abuse by a dominant enterprise, including unfair or discriminatory prices or conditions, predatory pricing, limiting production, denying market access, and using dominance in one market to enter or protect another. Suppliers to government departments and public sector undertakings should keep bid rigging in view, because public procurers can bring information to the CCI. Conduct that draws scrutiny includes:
- discussing prices, bids or capacity with competitors, including at trade association meetings
- allocating customers, territories or tenders between competitors
- fixing the price at which distributors resell
- exclusive arrangements that shut out rivals
- tying, bundling and loyalty rebates by a dominant supplier
- refusing to supply an essential input
Merger control and the deal-value threshold
A combination that crosses the asset or turnover thresholds notified under Section 5 must be notified to the CCI before it takes effect. Since September 2024, a transaction valued above ₹2,000 crore also needs approval if the target has substantial business operations in India, as defined in the Competition Commission of India (Combinations) Regulations, 2024. The CCI must form a prima facie view within thirty days, and the combination cannot take effect until it is approved or 150 days have passed from notice.
Completing a notifiable deal before approval can attract a penalty of up to 1% of the total turnover or assets of the combination, whichever is higher. Some acquisitions are exempt, such as certain minority acquisitions made solely as an investment, and the Green Channel route gives deemed approval on filing where the parties have no horizontal, vertical or complementary overlaps. We work with our M&A practice so that the filing is built into the deal timetable.
CCI investigations, settlements and commitments
Cases begin with information from a customer, competitor or public body, a reference from government, or the CCI acting on its own motion. If it finds a prima facie case under Section 26(1), the Director General investigates, with powers to summon witnesses, call for documents and search premises. Penalties can reach 10% of average turnover for the three preceding financial years and, for cartels, the higher of three times profit or 10% of turnover for each year the cartel continued.
For vertical and abuse cases the 2023 amendment added two negotiated routes: commitments, offered after an investigation is ordered and before the Director General reports, and settlements, offered after the report and before a final order. Cartels are excluded from both, but a cartel member that discloses its participation can apply for a lesser penalty, with a further reduction for disclosing another cartel. Appeals go to the NCLAT, subject to a deposit of 25% of any penalty.
A compliance programme addresses most of these risks: rules for dealing with competitors, reviews of distribution and pricing terms, and training for sales teams. It fits within wider governance, risk and compliance work.
For a question on a filing or an inquiry, the contact page sets out how to reach our Raipur and Bilaspur offices.
What the practice handles
- Assessing whether a transaction is a notifiable combination
- Merger control filings in Form I and Form II, including Green Channel filings
- Responses to CCI information requests and Director General investigations
- Lesser penalty applications for cartel participants
- Settlement and commitment applications under Sections 48A and 48B
- Review of distribution, supply, licensing and pricing arrangements
- Competition compliance programmes, audits and training
- Information to the CCI about anti-competitive conduct by others
- Appeals to the NCLAT and the Supreme Court
Where these matters are heard
- Competition Commission of India and its Director General
- National Company Law Appellate Tribunal, for appeals and compensation claims
- Supreme Court of India, on further appeal
Questions about Antitrust & Competition
What is the deal-value threshold?
Since September 2024, a transaction valued above ₹2,000 crore must be notified to the CCI if the target has substantial business operations in India, even where the parties fall below the asset and turnover thresholds. The Combinations Regulations, 2024 explain how deal value is calculated and when a target, including a digital business, has substantial operations in India.
Can a company settle a case with the CCI?
Yes, in cases about vertical agreements or abuse of dominance. A commitment can be offered after the CCI orders an investigation and before the Director General's report, and a settlement after the report and before the final order. The CCI may accept or reject either proposal, and cartel cases under Section 3(3) are excluded from both routes.
What happens if a notifiable deal closes without approval?
Completing a combination before approval, often called gun-jumping, can attract a penalty of up to 1% of the total turnover or assets of the combination, whichever is higher. Transaction documents should therefore make CCI approval a condition precedent and prevent the acquirer from exercising control or influence before approval. Covenants governing the period between signing and closing need the same care.
Are joint ventures between competitors treated as cartels?
Not automatically. Section 3(3) exempts joint ventures that increase efficiency in production, supply, distribution, acquisition or control of goods or services from the presumption that applies to agreements between competitors. The venture's scope, the information the parents share through it and any restrictions placed on them still need review, and forming it may itself require notice to the CCI.
Can individuals be held liable for a company's contravention?
Yes. Under Section 48 of the Competition Act, every person in charge of and responsible for the conduct of the business at the time is deemed liable, unless they show the contravention occurred without their knowledge or that they exercised due diligence to prevent it. Directors, managers and officers whose consent, connivance or neglect contributed are also liable.
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This page describes the law in general terms as of 24 September 2026. It is not legal advice. The outcome of any matter depends on its facts, and the firm does not guarantee results.
