State the factors that the Competition Commission of India should consider while determining whether a combination is likely to have an appreciable adverse effect on competition under the Competition Act, 2002.
CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · June 2025
State the factors that the Competition Commission of India should consider while determining whether a combination is likely to have an appreciable adverse effect on competition under the Competition Act, 2002.
Answer & Explanation:
As per Section 20(4) of the Competition Act, 2000, for the purposes of determining whether a combination would have the effect of or is likely to have an appreciable adverse effect on competition in the relevant market, the Commission shall have due regard to all or any of the following factors, namely: - Actual and potential level of competition through imports in the market Extent of barriers to entry into the market; Level of concentration in the market; Degree of countervailing power in the market; Likelihood that the combination would result in the parties to the combination being able to significantly and sustainably increase prices or profit margins; Extent of effective competition likely to sustain in a market; Extent to which substitutes are available or are likely to be available in the market; Market share, in the relevant market, of the persons or enterprise in a combination, individually and as a combination; Likelihood that the combination would result in the removal of vigorous and effective competitor or competitors in the market; Nature and extent of vertical integration in the market; Possibility of a failing business; Nature and extent of innovation; Relative advantages, by way of the contribution to the economic development, by any combination having or likely to have appreciable adverse effect on competition. Whether the benefits of the combination outweigh the adverse impact of the combination, if any.
Topics: Competition Act, 2002
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