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CS Executive · Economic, Commercial and Intellectual Property Laws · Competition Law

The CCI finds that a combination between Sagar Foods and Malabar Dairies has an appreciable adverse effect on competition, and that this effect cannot be eliminated by suitable modification. Which course is available to the Commission under Section 31(5), without prejudice to penalty or prosecution under the Act?

The Commission may order that the combination not be given effect to, declare it void, or frame a scheme for the parties to implement. Section 31(5)(c) applies where the adverse effect cannot be eliminated by suitable modification. Modification-based approval under Section 31(3) is unavailable here.

  1. AOrder that the combination not be given effect to, declare it void, or frame a scheme for the parties to implementCorrect
  2. BOnly approve it subject to modifications proposed by the parties
  3. CTreat it as approved if 150 days have passed, regardless of its effect
  4. DRefer it to the authorities under other laws, which must then decide approval

Explanation

Section 31(5)(c) covers an adverse effect that cannot be eliminated by modification. The Commission may then order that the combination not be given effect to, or be declared void, or frame a scheme to be implemented by the parties. Approval with modification under Section 31(3) applies only where the effect can be eliminated.

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