Economic, Commercial and Intellectual Property Laws · Competition Law

Regulation of Combinations under the Competition Act

Updated 11 October 2026 · Fact-checked

A combination is an acquisition, acquisition of control, or merger or amalgamation that crosses the asset, turnover or deal-value limits in section 5. Section 6 voids combinations that cause an appreciable adverse effect on competition in India. You must notify the CCI after the trigger event and before closing, and wait for approval or 150 days.

Understand Combinations: Regulation of Mergers and Acquisitions

A combination is a large deal that can change market structure. Section 5 of the Competition Act, 2002 defines it. It covers acquisition of control, shares, voting rights or assets, acquiring of control, and mergers or amalgamations, once the parties cross the notified limits. The limits are set by assets, turnover or value of transaction.

The law does not ban big deals. It bans deals that harm competition. Section 6(1) says no person or enterprise shall enter into a combination that causes or is likely to cause an appreciable adverse effect on competition (AAEC) within the relevant market in India. Such a combination is void.

The Central Government revises the asset, turnover and deal-value limits by notification (section 20(3)). It can raise them, lower them or keep them the same. So learn the structure of the test and check the current notified figures in your study material on exam day.

The process is notice, review, decision. Under section 6(2), the parties must notify the Commission after board approval of a merger or amalgamation, or after executing an agreement or other document for an acquisition. They must do this before the combination is consummated. The earlier fixed 30-day filing window was replaced by this 'after trigger, before closing' rule. The Commission then inquires under section 20(2).

The standstill rule protects the market while the CCI reviews. Under section 6(2A), no combination can take effect until 150 days have passed from the day notice is given, or the Commission passes an order under section 31, whichever is earlier.

Key rules to remember

Substantive prohibition: Combination with AAEC in the relevant market in India = void (s. 6(1)); The test is effect on competition in the relevant market in India, not the size of the deal alone.
When to file notice: After board approval of merger/amalgamation OR execution of agreement/other document for acquisition (or acquiring of control) – but BEFORE consummation (s. 6(2)); 'Other document' includes a document conveying a decision to acquire. For a hostile acquisition, it includes the acquirer's own document. A public announcement under the SEBI Takeover Regulations also counts.
Standstill period: No combination takes effect until 150 days from notice OR Commission's order under s. 31, whichever is earlier (s. 6(2A)); Earlier figure was 210 days; it was cut to 150 days by the 2023 amendment.
Deemed approval: No order within 150 days from date of notice under s. 6(2) = combination deemed approved (s. 31(6)); Also, if the Commission forms no prima facie opinion under s. 29(1B), the combination is deemed approved (proviso to s. 31(1)).
Orders available to the CCI: Approve (s. 31(1)); direct it shall not take effect (s. 31(2)); approve with modifications (s. 31(3)); Under s. 31(5) it may also order that the combination not be given effect to, declare it void, or frame a scheme to address the AAEC.
Green channel route: Notice under s. 6(4) for combinations meeting prescribed criteria; on filing and acknowledgement, deemed approved (s. 6(5)); If the notice is wrong or incomplete, approval is void ab initio, after a hearing (s. 6(6)).
Suo motu inquiry limit: No inquiry on own knowledge after one year from the date the combination took effect (s. 20(1) proviso); Applies to inquiries started by the Commission on its own information.

How to solve Combinations: Regulation of Mergers and Acquisitions questions

Use this order for any combination question, whether it is a problem or a theory question.

1Identify the transaction: acquisition of control, shares, voting rights or assets, or merger or amalgamation. Link it to section 5.
2Check the thresholds: assets, turnover or deal value, as notified. Check whether any exemption applies, such as section 6(9) for a bank, public financial institution, foreign portfolio investor or Category I AIF acting under a covenant of a loan or investment agreement.
3Decide whether notice is needed. State the trigger: board approval of the merger or amalgamation, or execution of the agreement or other document. Say it must be filed before consummation (s. 6(2)).
4Choose the route: normal notice under s. 6(2), or the green channel under s. 6(4) if the prescribed criteria are met.
5Apply the timeline: the 150-day standstill (s. 6(2A)) and deemed approval (s. 31(6)).
6Apply the test: whether the combination causes or is likely to cause AAEC, using the s. 20(4) factors such as entry barriers, market share, concentration and failing business.
7State the outcome under s. 31: approve, approve with modifications, or block. Add the consequence of a void combination (s. 31(13)).
8Close with a one-line conclusion that answers the question asked.

Quickest way: Trigger – Notice – 150 – AAEC

When to use it: Use it for short-note questions and for fact-based questions with limited time.

Trigger: name the board approval or agreement that starts the notice duty.
Notice: before closing, in the specified form with the fee, or green channel if eligible.
150: no closing before 150 days or an earlier s. 31 order. No order in 150 days means deemed approval.
AAEC: approval if no appreciable adverse effect; void or blocked if there is one; modifications if cure is possible.
Write the conclusion and cite sections 6, 20 and 31.

Common mistakes in Combinations: Regulation of Mergers and Acquisitions

Writing that notice must be filed within 30 days of the trigger event.
Older books and notes carry the earlier wording.
Fix: Write that notice is given after the board approval or agreement and before consummation (s. 6(2)). There is no 30-day window in the current text.
Quoting 210 days as the standstill or approval period.
The old figure is still common in older material.
Fix: Use 150 days in both s. 6(2A) and s. 31(6). Mention that the 2023 amendment shortened it.
Saying every large deal is void.
Students mix up crossing the thresholds with having an adverse effect.
Fix: Crossing the thresholds only makes it a combination that needs notice. It is void only if it causes or is likely to cause AAEC (s. 6(1)).
Treating the green channel as an exemption from filing.
The word 'deemed approved' sounds like no filing is needed.
Fix: Green channel still needs a notice under s. 6(4). Approval is deemed on filing and acknowledgement, and is void ab initio if the information is materially incorrect or incomplete (s. 6(6)).
Leaving out the s. 20(4) factors in an AAEC answer.
Students focus on timelines and forget the test the CCI applies.
Fix: List at least four or five factors, such as barriers to entry, level of concentration, market share, countervailing power, removal of a vigorous competitor and failing business.
Quoting exact threshold figures from memory without checking.
The limits are revised by notification, so memorised numbers go out of date.
Fix: Explain the structure first (assets or turnover or deal value, in India and in India plus outside). Quote figures only if you are sure they are current.

Worked examples

Example 1

Alpha Ltd and Beta Ltd, both Indian companies, sign a share purchase agreement on 1 March for Alpha to acquire control of Beta. The deal crosses the notified thresholds. Alpha files a notice with the CCI on 10 March. The CCI passes no order. Advise on the earliest date Alpha can close the deal without an order, and on the effect of silence by the CCI.

Show the solution

Provision: under s. 6(2), notice is given after execution of the agreement and before consummation. Alpha has filed after the agreement and before closing, so the filing is in order.
Standstill: under s. 6(2A), no combination takes effect until 150 days have passed from the day notice was given, or the CCI passes an s. 31 order, whichever is earlier.
Count 150 days from 10 March. With no order, the standstill ends on 150 days from the notice date.
Silence: under s. 31(6), if no order or direction is issued within 150 days from the date of notice, the combination is deemed approved.
Effect: Alpha may then complete the acquisition. If the CCI approves earlier by order under s. 31(1), Alpha may close on that earlier date.

Answer: Alpha cannot close until 150 days have passed from 10 March, unless the CCI approves earlier under s. 31. If no order is passed in 150 days, the combination is deemed approved under s. 31(6).

Example 2

Gamma Ltd notifies a proposed acquisition under the s. 6(4) route and receives acknowledgement. Later, the CCI finds that Gamma's declarations were materially incomplete. What is the legal position?

Show the solution

Provision: s. 6(4) allows notice in the specified form with fee for combinations meeting the prescribed criteria. A separate notice under s. 6(2) is then not required.
Effect of filing: under s. 6(5), once the notice is filed and acknowledged, the combination is deemed approved under s. 31(1). No other approval is needed under s. 6(2) or 6(2A).
Finding: under s. 6(6), if the CCI finds within the period in s. 20(1) that the criteria are not met, or that the information or declarations are materially incorrect or incomplete, the approval is void ab initio.
Safeguard: the CCI can pass such order as it thinks fit, but only after giving the parties an opportunity of being heard.
Further consequence: if the combination is later declared void, other authorities deal with the deal as if it had not taken place (s. 31(13)).

Answer: Gamma's deemed approval is void ab initio under s. 6(6). The CCI may pass a suitable order after hearing Gamma, and a void combination is treated as if it never took place for the purposes of other laws.

Exam tips

Always cite section 6 for notice and standstill, section 20 for inquiry and factors, and section 31 for orders. Section references earn marks.
Use the current numbers: 150 days in both s. 6(2A) and s. 31(6). Do not write 30 days or 210 days.
For a 'discuss' question, follow the provision, facts, conclusion pattern. State s. 6(1), apply the trigger and timeline to the facts, then conclude.
In an AAEC answer, pick the s. 20(4) factors that match the facts, such as a rival being removed or a failing business.
Do not guess threshold figures. Explain the test and say the limits are revised by the Central Government under s. 20(3).

Practice questions from Competition Law

Combinations: Regulation of Mergers and Acquisitions in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Combinations: Regulation of Mergers and Acquisitions: frequently asked questions

What is a combination under the Competition Act?

A combination is an acquisition, acquisition of control, or merger or amalgamation that crosses the notified asset, turnover or deal-value limits in section 5. Only such deals fall under the notice regime of section 6.

When must notice of a combination be given to the CCI?

Under section 6(2), you give notice after the board approves the merger or amalgamation, or after the agreement or other document for acquisition is executed. You must do it before the combination is consummated.

How long does the CCI take to approve a combination?

No combination can take effect until 150 days from notice or an earlier order under section 31. If the CCI passes no order within 150 days, the combination is deemed approved under section 31(6).

What is the green channel route?

It is the route in section 6(4) to (6) for combinations meeting the prescribed criteria. On filing and acknowledgement of the notice, the combination is deemed approved. If the notice proves materially wrong or incomplete, approval is void ab initio after a hearing.

Can the CCI look at a deal after it has closed?

Yes. Under section 20(1), the CCI can inquire on its own knowledge into a combination that may cause AAEC. It cannot start such an inquiry after one year from the date the combination took effect.