Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Section 6 Competition Act: Prohibition of Anti-Competitive Combinations

Updated 11 October 2026 · Fact-checked

Section 6(1) of the Competition Act, 2002 says no person or enterprise shall enter into a combination that causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India. Such a combination is void. To solve a question, test the combination, the effect on competition, the notice and the timeline.

Understand Prohibition of Anti-Competitive Combinations

A combination is a large acquisition, acquisition of control, merger or amalgamation that crosses the thresholds in section 5. Section 6 is the rule that controls these deals. It protects competition in the market, not the parties.

Section 6(1) is the prohibition. No person or enterprise shall enter into a combination which causes or is likely to cause an appreciable adverse effect on competition (AAEC) within the relevant market in India. Such a combination is void. Note the words "is likely to cause". The Commission need not wait for harm to happen. A probable harm is enough.

The prohibition is backed by a notice system. A person or enterprise proposing a combination must give notice to the Commission under section 6(2), in the specified form and with the fee, giving details of the proposed combination. The notice is given after the board approves the merger or amalgamation, or after the agreement or other document for the acquisition is executed, but before the combination is consummated. The Act's Explanation widens "other document" to cover any document conveying a decision to acquire control, shares, voting rights or assets. It also covers a public announcement made under the SEBI Takeover Regulations, 2011.

Section 6(2A) adds a standstill. No combination shall come into effect until 150 days have passed from the day notice was given, or the Commission has passed orders under section 31, whichever is earlier. Before the 2023 amendment (effective 10 September 2024), the period was 210 days, and notice had to be given within 30 days of the trigger event. Know this contrast, but answer on the current text.

The Commission can also act on its own. Under section 20(1) it may inquire into a combination on its own knowledge or information, but not after one year from the date the combination took effect. Section 31 then sets out the outcomes: approval, a direction that the combination shall not take effect, approval with modifications, or an order that it be not given effect to or be declared void. If no order is passed within 150 days of notice, the combination is deemed approved.

Key rules to remember

Prohibition rule: Combination + AAEC (caused or likely) in relevant market in India ⇒ void (s 6(1)); Applies to the effect on competition within India. Both actual and likely effect count.
Notice duty: Notice to CCI after board approval (merger/amalgamation) or after execution of agreement/other document (acquisition/control), but before consummation (s 6(2)); Notice is in the specified form with the fee. The 30-day deadline was removed by the 2023 amendment.
Standstill period: No effect until 150 days from notice OR CCI order under s 31, whichever is earlier (s 6(2A)); Earlier it was 210 days. Use 150 days.
Deemed approval: No order within 150 days of notice under s 6(2) ⇒ combination deemed approved (s 31(6)); Also, if CCI forms no prima facie opinion under s 29(1B), the combination is deemed approved (proviso to s 31(1)).
Green channel route: Notice under s 6(4) acknowledged ⇒ deemed approved under s 31(1); no notice under s 6(2) or approval under s 6(2A) needed (s 6(5)); Only for combinations meeting the prescribed criteria and not otherwise exempt. Approval is void ab initio if the filing is incorrect or the criteria are not met (s 6(6)), after a hearing.
Suo motu inquiry limit: No inquiry under s 20(1) after one year from the date the combination took effect; Applies to inquiries on the Commission's own knowledge or information.
Exclusion: s 6 does not apply to share subscription, financing facility or acquisition by a public financial institution, FPI, bank or Category I AIF, pursuant to a covenant of a loan or investment agreement (s 6(9)); The acquisition must be under a covenant of the loan or investment agreement.

How to solve Prohibition of Anti-Competitive Combinations questions

Use this order for any case question on Section 6. Write provision, facts, conclusion.

1Identify whether the deal is a combination under section 5: acquisition, acquiring of control, or merger or amalgamation, and whether the asset, turnover or deal thresholds are met.
2State section 6(1): no combination causing or likely to cause AAEC in the relevant market in India, and such a combination is void.
3Check whether any exemption applies: section 6(7) exempted categories, or section 6(9) for covenant-based acquisitions by public financial institutions, FPIs, banks or Category I AIFs.
4Test the competition effect using the section 20(4) factors, such as market share, barriers to entry, concentration, substitutes, removal of a vigorous competitor, vertical integration, failing business, innovation, and whether benefits outweigh harm.
5Check the notice: form, fee, trigger event (board approval or execution of document) and timing before consummation. Consider whether the section 6(4) route applies.
6Apply the 150-day standstill under section 6(2A) and the deemed approval under section 31(6). Say whether the parties closed too early.
7Conclude with the section 31 outcome: approve, approve with modification, direct not to take effect, or declare void. Add the practical advice, such as filing before closing.

Quickest way: Four-line Section 6 answer

When to use it: Use this when time is short, or for a 5 to 8 mark short note on the prohibition.

Line 1: quote the rule. No combination causing or likely to cause AAEC in the relevant market in India, else void (s 6(1)).
Line 2: notice. Give notice after board approval or document execution, before consummation (s 6(2)).
Line 3: wait. No effect for 150 days or until CCI order, whichever is earlier (s 6(2A)); deemed approval if no order in 150 days (s 31(6)).
Line 4: apply facts. Name two or three section 20(4) factors from the case and state the conclusion.

Common mistakes in Prohibition of Anti-Competitive Combinations

Saying every combination is void.
Students read the word "void" and forget the condition.
Fix: Only a combination that causes or is likely to cause AAEC in the relevant market in India is void. Others can be approved.
Quoting 210 days and a 30-day filing limit.
Older notes and books still carry the pre-amendment text.
Fix: Use the current text: 150 days under section 6(2A), and notice after the trigger event but before consummation.
Treating notice as optional or as filed after closing.
Confusion with the old words "may, at his or its option".
Fix: Section 6(2) says the person or enterprise shall give notice, before consummation. A deal that closes early breaches the standstill.
Ignoring the 'likely to cause' limb.
Students look only for harm that has already happened.
Fix: State that likely effect is enough, and assess the future market using the section 20(4) factors.
Missing the section 6(9) exclusion.
It sits at the end of the section and is easily skipped.
Fix: Check whether a bank, public financial institution, FPI or Category I AIF acquired under a loan or investment agreement covenant. If so, section 6 does not apply.
Confusing the green channel with an ordinary filing.
Both involve notice to the Commission.
Fix: Under section 6(4) and (5), acknowledgement of notice means deemed approval, with no separate section 6(2) notice. The approval is void ab initio if the information is materially incorrect or incomplete (s 6(6)).

Worked examples

Example 1

Alpha Pharma Ltd and Beta Drugs Ltd are the two largest makers of a life-saving injection in India, with a combined market share that is very high and no import competition. Their boards approve a merger. The CCI finds the merger is likely to cause AAEC in the relevant market. Advise on the legal position under section 6.

Show the solution

Provision: section 6(1) bars any combination that causes or is likely to cause AAEC within the relevant market in India. Such a combination is void.
Facts: a merger of the two largest makers is a combination if the section 5 thresholds are met. Very high combined share, no import competition and the removal of a vigorous competitor are relevant under section 20(4)(a), (c), (h) and (i).
Notice: after the boards approve the merger, the parties must give notice to the Commission under section 6(2) before consummation. They cannot complete the merger for 150 days or until the CCI orders, whichever is earlier (s 6(2A)).
Outcome: if the AAEC cannot be removed by modification, section 31(2) and (5) allow the Commission to direct that the combination shall not take effect, or to declare it void.
Consequence: where a combination is ordered void, other authorities deal with the merger as if it had not taken place (s 31(13)).

Answer: The merger is likely to cause AAEC, so section 6(1) makes it void. The parties must notify the CCI before completing it and wait up to 150 days. The CCI can direct that it not take effect or declare it void under section 31, unless suitable modifications remove the AAEC.

Example 2

Gamma Ltd signs a share purchase agreement on 1 March to acquire control of Delta Ltd. It gives notice to the CCI on 10 March. The CCI passes no order. On what date can the acquisition come into effect, and what is the position if the CCI forms no prima facie opinion of AAEC? Assume the section 5 thresholds are met and no exemption applies.

Show the solution

Notice trigger: execution of the agreement on 1 March is the trigger under section 6(2)(b). Notice on 10 March is valid since it is after the trigger and before consummation.
Standstill: under section 6(2A), the combination cannot take effect until 150 days from the day notice was given, unless the CCI passes an order under section 31 earlier.
Count 150 days from 10 March. March has 21 days left after 10 March (to 31 March), giving 21. Add April 30 = 51. Add May 31 = 82. Add June 30 = 112. Add July 31 = 143. Add 7 days of August = 150. The 150th day is 7 August.
Deemed approval: under section 31(6), if no order is passed within 150 days of notice, the combination is deemed approved. So the acquisition can take effect after 7 August.
Prima facie opinion: under the proviso to section 31(1), if the CCI does not form a prima facie opinion under section 29(1B), the combination is deemed approved and no separate order is needed. Closing can then follow the approval without waiting for the full period (s 6(2A), earlier of the two events).

Answer: If no order is passed, the 150 days end on 7 August and the acquisition is deemed approved. If the CCI forms no prima facie opinion of AAEC, the combination is deemed approved without a separate order, and the parties need not wait for the full 150 days.

Exam tips

Quote section 6(1) word for word in the first line: "causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India", and add "void".
Always use 150 days and the current notice trigger. Mention the old 210 days and 30 days only as a one-line contrast.
In case questions, list three or four section 20(4) factors that match the facts. Do not recite all fourteen.
Close every answer with a practical point: file notice before closing, do not consummate during the standstill, and consider the green channel route if eligible.
Check section 6(9) and the exempted categories before concluding that notice is needed.

Practice questions from Regulation of Combinations

Prohibition of Anti-Competitive Combinations in other exams

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

Prohibition of Anti-Competitive Combinations: frequently asked questions

Can a combination be void under the Competition Act?

Yes. Section 6(1) says a combination which causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India is void. The Commission can also order under section 31 that it be declared void or not given effect to.

Is notice to the CCI compulsory under Section 6?

Yes, for a combination that needs notice. Section 6(2) says the person or enterprise shall give notice before consummation. Exempted combinations, and those covered by section 6(9), do not need it.

How long must parties wait before closing a combination?

Under section 6(2A) a combination cannot take effect until 150 days from the notice, or until the CCI passes an order under section 31, whichever is earlier. This replaced the earlier 210 days.

What is the green channel route in Section 6?

Under section 6(4) and (5), a combination meeting the prescribed criteria can be notified in the specified form with the fee. On acknowledgement, it is deemed approved. If the information is materially incorrect or incomplete, the approval is void ab initio after the parties are heard (s 6(6)).