Competition Law/Anti Trust Law

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Competition Law/Anti Trust Law

Diwan Advocates

Competition Law Practice

A dominant player in a regional market begins supplying below cost to squeeze out a new entrant. The new entrant has documented the pricing but does not know whether it has a legal remedy or how to pursue it.

Two companies in the same industry are considering a merger. Their combined market share crosses the threshold that requires Competition Commission of India approval. The timeline is tight and the deal cannot close until approval is obtained.

Competition law in India governs how companies behave in markets and how they combine with each other. The Competition Commission of India has real enforcement powers, including fines of up to ten percent of average turnover for three years. At Diwan Advocates, we advise companies on compliance, represent parties in CCI investigations, and advise on merger filings.

The Competition Act, 2002

The Competition Act, 2002 prohibits three categories of conduct: anti-competitive agreements, abuse of dominant position, and combinations that appreciably adversely affect competition in India. The CCI has the power to inquire, direct parties to cease and desist, impose penalties, and order structural remedies including division of an enterprise. Appeals lie to the National Company Law Appellate Tribunal and from there to the Supreme Court.

Anti-Competitive Agreements

Agreements between competitors that fix prices, limit production, allocate markets, or engage in bid rigging are presumed to have an appreciable adverse effect on competition and are prohibited without any need to prove actual harm. Vertical agreements between parties at different levels of the supply chain are assessed on whether they actually cause harm. Exclusive supply, exclusive distribution, and resale price maintenance arrangements are evaluated on their effects in the relevant market.

Abuse of Dominant Position

A company is dominant in India if it is able to operate independently of competitive forces in the relevant market. Dominance itself is not prohibited but its abuse is. Abusive conduct includes predatory pricing, limiting supply to the prejudice of consumers, using dominance in one market to gain advantages in another, and imposing unfair or discriminatory conditions in purchase or sale. Establishing dominance requires a careful market definition exercise, which is often the contested issue in these cases.

Merger Control

Companies proposing to merge, acquire, or combine must file with the CCI if their combined assets or turnover exceed the prescribed thresholds. The CCI has thirty working days to form a prima facie view and may take up to two hundred and ten days in total. Most combinations are cleared at the prima facie stage. Combinations that raise competition concerns may be approved subject to modifications. We advise on whether a filing is required, prepare the filing, and represent parties during the CCI review.

Cross-Law Note: Sector-specific regulators such as SEBI, TRAI, and IRDAI have their own competition-related functions. Where a dominant company is also subject to sector regulation, the question of which regulator has primacy over a particular conduct can itself be a contested issue. The Competition Act, 2002 generally prevails over sector regulation in matters of competition, but the interface between the two regimes requires careful advice.

Why Diwan Advocates for Competition Law?

Investigations	We represent companies and individuals under CCI investigation, from the information stage through to the NCLAT and Supreme Court.
Merger Filings	We prepare and submit merger filings and manage the CCI review process, including responding to requests for information and negotiating modifications.
Compliance	We advise companies on structuring agreements and commercial practices to avoid competition law exposure before problems arise.
Market Definition	The outcome of most competition cases depends on how the relevant market is defined. We invest in this analysis from the outset.

Legislative Reference Index

Legislation	Relevance	Reference
Competition Act, 2002	The principal statute. Anti-competitive agreements, abuse of dominance, merger control, CCI powers, and NCLAT appeals.	View ->
Companies Act, 2013	Merger and amalgamation procedures run alongside CCI review. NCLT approval is required in addition to CCI clearance for most combinations.	View ->
Consumer Protection Act, 2019	Abusive pricing and unfair trade practices may attract both CCI and consumer forum jurisdiction. Coordination between the two is sometimes necessary.	View ->
Foreign Exchange Management Act, 1999	Cross-border acquisitions require both FEMA compliance and CCI approval where thresholds are met. The two processes run in parallel.	View ->
Insolvency and Bankruptcy Code, 2016	Acquisitions through the IBC resolution process are exempt from certain CCI requirements. The scope of this exemption has been the subject of litigation.	View ->
Specific Relief Act, 1963	Where a party seeks to restrain anti-competitive conduct pending investigation, injunctions may be sought under the Specific Relief Act in addition to CCI proceedings.	View ->

Competition investigations move on the CCI's timeline, not the parties'. Early advice changes the shape of the response.

Diwan Advocates is ready.

Diwan Advocates | Delhi, India

Dr. Farrukh Khan

Dr. Farrukh Khan is the founding partner of the firm, and is also the administrative head. He is placed amongst the most eloquent and skilful lawyers in the country with above par legal knowledge....