Under what circumstances, the Competition Commission may inquire into the appreciable adverse effect caused or likely to be caused on competition in India ?

The Commission under section 20 of the Competition Act, 2002 may inquire into the appreciable adverse effect caused or likely to be caused on competition in India as a result of combination in the following circumstances: upon its own knowledge or information (suo moto); or upon receipt of notice under section 6(2) relating to acquisition referred to in section 5(a); or acquiring of control referred to in section 5(b); or merger or amalgamation referred to in section 5(c) of the Act. It has also been provided that a suo moto enquiry shall be initiated by the Commission within one year from the date on which such combination has taken effect. Thus, the Act has provided a time limit within which suo moto inquiry into combinations can be initiated. This provision dispels the fear of enquiry into combination between merging entities after the expiry of stipulated period. On receipt of the notice under section 6(2) from the person or an enterprise which proposes to enter into a combination, it is mandatory for the Commission to inquire whether the combination referred to in that notice, has caused or is likely to cause an appreciable adverse effect on competition within the relevant market in India.