Section 20 - Inquiry into combination by Commission

Combination inquiry assesses whether mergers or acquisitions cause an appreciable adverse effect on competition and market structure.

The Commission may inquire into acquisitions, control acquisitions, mergers or amalgamations to determine whether such combinations have caused or are likely to cause an appreciable adverse effect on competition, acting on its own information or on notices, with a one year limit to initiate inquiries after a combination takes effect. The Central Government, with the Commission, periodically adjusts asset, turnover or transaction value thresholds for the merger regime. The Commission must consider specified factors-including import competition, barriers to entry, market concentration, countervailing power, price effects, availability of substitutes, market shares, removal of competitors, vertical integration, failing business possibilities, innovation, and whether benefits outweigh adverse effects-when determining competitive impact.