Sections 18 and 22 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 18 of the Competition Act, 2002 sets out the Commission's duty in a single sentence and lets it enter into memoranda or arrangements with agencies. Section 22 says how the Commission meets and decides. The Competition (Amendment) Act, 2023 substitutes Section 18 (adding a second proviso) and amends Section 22(3) to omit the casting vote. This article covers both sections, and also records the sections between them that are omitted.
As per the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023. The Commission's duty is to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants in markets in India. After 2023 it may enter into memoranda or arrangements not only with foreign agencies (with the Central Government's prior approval) but also with any statutory authority or department of Government. The quorum for a meeting is three Members, and the casting vote words are omitted. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 18: the duty of the Commission
The 2023 Act (its Section 13) substitutes Section 18. As substituted it reads:
"18. Subject to the provisions of this Act, it shall be the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India:
Provided that the Commission may, for the purpose of discharging its duties or performing its functions under this Act, enter into any memorandum or arrangement with the prior approval of the Central Government, with any agency of any foreign country:
Provided further that, the Commission may, for the purpose of discharging its duties or performing its functions under this Act, enter into any memorandum or arrangement with any statutory authority or department of Government."
The words of the main part are the same as in the consolidated text, which also says "to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India". "Freedom of trade" is the Act's own phrase and matches the long title of the Act. The first proviso is also as printed in the consolidated text. The change is the second proviso.
| Point | Before the 2023 Act | After the 2023 Act |
|---|---|---|
| Main duty | Eliminate practices having adverse effect on competition; promote and sustain competition; protect consumers; ensure freedom of trade | Same words |
| Memorandum or arrangement with a foreign agency | Yes, with the prior approval of the Central Government | Same |
| Memorandum or arrangement with a statutory authority or department of Government | Not provided | Second proviso: yes, and no prior approval is mentioned in the proviso |
The second proviso mentions no prior approval, and we say only that none is printed in it. "Statutory authority" has the meaning in Section 2(w); see our article on Section 2 terms. The Commission's power to make references to statutory authorities, and the reverse, are dealt with in Sections 21 and 21A; see our article on references between statutory authorities and the Commission.
Example. The Commission wishes to share expertise with a sector regulator on how to recognise cartel behaviour in a regulated market. Under the second proviso it may enter into a memorandum or arrangement with that statutory authority. If the other party is an agency of a foreign country, the first proviso applies, and the Central Government's prior approval is needed.
If you deal with a regulator and the Commission at the same time, a legal consultation can help identify which body's process applies to which part of your case.
Section 22: meetings of the Commission
The consolidated text of Section 22 has three sub-sections and a proviso (the footnote shows that this section was substituted in 2007).
- Section 22(1): "The Commission shall meet at such times and places, and shall observe such rules and procedure in regard to the transaction of business at its meetings as may be provided by regulations."
- Section 22(2): "The Chairperson, if for any reason, is unable to attend a meeting of the Commission, the senior-most Member present at the meeting, shall preside at the meeting."
- Section 22(3): "All questions which come up before any meeting of the Commission shall be decided by a majority of the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the Member presiding, shall have a second or casting vote: Provided that the quorum for such meeting shall be three Members."
The consolidated text prints "second or/casting vote" with a stray stroke, a printing slip. The 2023 Act (its Section 18) directs that in sub-section (3) the words "and in the event of equality of votes, the Chairperson or in his absence, the Member presiding, shall have a second or casting vote" shall be omitted.
An attempt to reconcile the amending clause with the base text
The two texts differ in two small respects. The consolidated text reads "in the event of an equality of votes" and "second or/casting vote"; the gazette clause reads "in the event of equality of votes" and "second or casting vote". The sense is the same and the clause plainly targets the same words, so we read it as omitting the whole casting-vote clause. The strict word-for-word match fails on the article "an" and on the stroke in the base text, and we record that. The gazette does not direct what happens to the punctuation before the proviso, and we leave the proviso as printed.
After the omission, sub-section (3) reads: "All questions which come up before any meeting of the Commission shall be decided by a majority of the Members present and voting" followed by the proviso that "the quorum for such meeting shall be three Members".
| Point | Before | After (2023 Act) |
|---|---|---|
| Decision | Majority of Members present and voting | Same |
| Equality of votes | Chairperson, or in his absence the presiding Member, has a second or casting vote | The words are omitted |
| Quorum | Three Members | Same |
| Presiding | Senior-most Member present when the Chairperson cannot attend | Same |
| Rules and procedure | By regulations | Same |
Two practical consequences follow from the printed text, and we put them neutrally. A quorum of three Members is needed for a meeting. With the casting-vote words gone, the text says nothing about how a tie is resolved; we do not fill the gap. The times, places, rules and procedure of meetings are left to regulations, and this article states none of their detail; the Commission's 2024 General Regulations are summarised in our overview of those regulations.
Sections 23, 24 and 25
Sections 23, 24 and 25 are printed in the consolidated text as "Omitted by the Competition (Amendment) Act, 2007". They have no article of their own and we do not describe what they used to say.
Why this matters
An order that follows a properly convened meeting is the basis of the Commission's directions. For the powers and procedure that flow from it, see our guides on CCI powers and how the CCI works in practice. The composition of the Commission is in our article on Sections 7 to 9.
Need help understanding how the Commission decides?
If you are preparing for a hearing or responding to an order, it helps to know how the Commission meets, who presides and what the quorum is. Our team can read the provisions with you; start with a legal consultation.
Key takeaways
- Section 18 is substituted in 2023; the duty is unchanged and a second proviso allows memoranda or arrangements with any statutory authority or department of Government.
- Memoranda with an agency of a foreign country need the Central Government's prior approval.
- Section 22(3) now omits the casting vote words; the quorum remains three Members.
- The wording of the amending clause and the base text differ slightly; the sense is the same.
- The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
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- Competition Act 2023 amendment: key changes
Disclaimer: Based on the consolidated text of the Competition Act, 2002 published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, and on the regulations and guidelines of the Commission as notified in 2024, as consulted on 2 October 2026. Commencement notifications, notified thresholds, rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.