The Competition Commission of India has received a complaint that the combination proposal of Tina Ltd. and Meena Ltd. is going to have an appreciable adverse effect on competition. Explain the factors to be considered t

The Competition Act, 2002, envisages 'appreciable adverse effect on competition' in the relevant market in India as the criterion for regulating combinations. To evaluate this effect, the Competition Commission of India (CCI) considers the factors mentioned in sub-section (4) of Section 20 of the Act. These factors include: Actual and Potential Level of Competition: Through imports in the market. Barriers to Entry: The extent of barriers to entry into the market. Level of Concentration: The degree of concentration in the market. Countervailing Power: The degree of countervailing power in the market. Price/Profit Margin Increase: Likelihood that the combination would result in the parties being able to significantly and sustainably increase prices or profit margins. Effective Competition: The extent of effective competition likely to sustain in a market. Availability of Substitutes: The extent to which substitutes are available or are likely to be available in the market. Market Share: Market share, in the relevant market, of the persons or enterprise in a combination, individually and as a combination. Removal of Competitors: Likelihood that the combination would result in the removal of a vigorous and effective competitor or competitors in the market. Vertical Integration: Nature and extent of vertical integration in the market. Failing Business: Possibility of a failing business. Innovation: Nature and extent of innovation. Relative Advantage/Economic Development: Relative advantage, by way of contribution to economic development, by any combination having or likely to have an appreciable adverse effect on competition. Benefits vs. Adverse Impact: Whether the benefits of the combination outweigh the adverse impact of the combination, if any.