Critically examine the criteria considered by Competition Commission of India, before sanctioning or approving a Combination.

The Mergers, amalgamations and acquisition in India are regulated by the Competition Commission of India (CCI). The CCI has to follow a set of procedures which have been laid down in the Competition Act, 2002 and with the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations 2011(Combination Regulation). The CCI will consider a few criteria before sanctioning or approving a combination. These criteria are: Actual and potential level of competition through imports in the market; Extent of barriers to entry into the market; Level of combination 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 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 a vigorous and effective competition 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 advantage, 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.