ABC Ltd and RST Ltd after amalgamation became new company and renamed as XYZ Ltd. Before amalgamation, both companies were major market player in the cement business. After amalgamation, they acquired monopoly status in

ABC Ltd and RST Ltd after amalgamation became new company and renamed as XYZ Ltd. Before amalgamation, both companies were major market player in the cement business. After amalgamation, they acquired monopoly status in the market and driving out existing competitors out of the market by setting up cut throat pricing. Over a period of time, pricing for cement was set in such a manner that it is almost impossible for any new competitor to enter the market. After 2 years of this combination when media started making noise about this merger and adverse pricing of cement, Competition Commission of India came into action and set up an inquiry whether such combination has caused appreciable adverse effect on competition in India. Media approached Managing Director of XYZ Ltd to ask whether inquiry by CCI would make them to reduce cement prices in the market or they will amend pricing agreement with dealers or what will be Company's approach to this enquiry? MD of XYZ Ltd responded to media that CCI now has no right to set up inquiry now, it is time barred. Hence, he is not worried about enquiry at all as it is illegal. Do you agree with MD's opinion that CCI cannot initiate inquiry now and it is illegal? Explain.