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        Law of Competition

        2019 (7) TMI 2006 - AT - Law of Competition

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        Combination approval is limited to prima facie competition review; abuse-of-dominance claims cannot be raised at approval stage. Under the Competition Act, review of a combination under Section 6(2) is confined to a prima facie assessment of whether it is likely to cause an ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Combination approval is limited to prima facie competition review; abuse-of-dominance claims cannot be raised at approval stage.

                            Under the Competition Act, review of a combination under Section 6(2) is confined to a prima facie assessment of whether it is likely to cause an appreciable adverse effect on competition; if no such concern emerges, approval under Section 31 follows and the Section 29 process is unnecessary. Third-party objections are relevant only where the Commission forms a prima facie adverse view. Allegations of undisclosed relevant markets or abuse of dominant position cannot be examined at the approval stage because they belong to a separate Section 4 inquiry. The communication was not an appealable order under Section 53A, so the appeal was not maintainable.




                            Issues: Whether the appeal was maintainable under Section 53B of the Competition Act, 2002 against the Commission's communication relating to approval of the combination and whether allegations of undisclosed relevant markets and abuse of dominant position could be examined at the stage of approval under Section 31.

                            Analysis: A notice under Section 6(2) is to be examined by the Commission for forming only a prima facie opinion on whether a combination is likely to cause or has caused an appreciable adverse effect on competition. If no such prima facie case emerges, the Commission is bound to approve the combination under Section 31 and is not required to follow the procedure under Section 29. The statutory scheme shows that objections by third parties are relevant only when the Commission forms a prima facie adverse view. The appeal provision under Section 53B lies only against directions, decisions, or orders of the kinds enumerated in Section 53A(1)(a). A challenge based on alleged abuse of dominant position could not be entertained at the stage of combination approval, because such allegation arises only after the combination takes effect and belongs to a different statutory enquiry under Section 4. The impugned communication did not fall within the category of appealable orders contemplated by Section 53A.

                            Conclusion: The appeal was not maintainable and the challenge to the Commission's communication failed.


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