Section 19 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.
Sections 3 and 4 of the Competition Act, 2002 turn on ideas the statute does not define by themselves: appreciable adverse effect, dominant position and relevant market. Sub-sections (3) to (7) of Section 19 list the factors to which the Commission must have due regard when it applies those ideas. The Competition (Amendment) Act, 2023 trims and widens some of those lists, and this article shows the lists as they read after the amendment.
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 "shall have due regard to all or any" of the factors listed. In Section 19(3) the 2023 Act drops "by hindering entry into the market" from clause (c) and changes "accrual of benefits" to "benefits or harm" in clause (d). It adds two factors to the relevant geographic market list in sub-section (6) and two factors plus a words change to the relevant product market list in sub-section (7). Sub-sections (4) and (5) are not changed. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 19(3): factors for appreciable adverse effect
Section 19(3) applies "while determining whether an agreement has an appreciable adverse effect on competition under section 3". The Commission "shall ... have due regard to all or any of the following factors". These are the factors used with Section 3(1) and Section 3(4); see our articles on cartels and bid rigging and on vertical agreements.
| Clause | Consolidated text | As amended by the 2023 Act (Section 14(b)) |
|---|---|---|
| (a) | creation of barriers to new entrants in the market | Same |
| (b) | driving existing competitors out of the market | Same |
| (c) | foreclosure of competition by hindering entry into the market | "foreclosure of competition" (the words "by hindering entry into the market" are omitted) |
| (d) | accrual of benefits to consumers | "benefits or harm to consumers" ("accrual of benefits" replaced by "benefits or harm") |
| (e) | improvements in production or distribution of goods or provision of services; or | Same |
| (f) | promotion of technical, scientific and economic development by means of production or distribution of goods or provision of services | Same |
Two points deserve comment. Clause (d) now looks at harm to consumers as well as benefits, so the test is no longer limited to benefits that accrue. And clause (c) is shorter: foreclosure of competition is a factor without the qualifying words about hindering entry. The 2023 Act does not otherwise say what these changes are meant to do, and we add no gloss.
If you are testing an arrangement against these factors before signing, our legal dispute resolution team can review the contract with you.
Section 19(4): factors for dominant position
Section 19(4) applies "while inquiring whether an enterprise enjoys a dominant position or not under section 4". The 2023 Act does not amend it. The factors are:
(a) market share of the enterprise; (b) size and resources of the enterprise; (c) size and importance of the competitors; (d) economic power of the enterprise including commercial advantages over competitors; (e) vertical integration of the enterprises or sale or service network of such enterprises; (f) dependence of consumers on the enterprise; (g) monopoly or dominant position whether acquired as a result of any statute or by virtue of being a Government company or a public sector undertaking or otherwise; (h) entry barriers including barriers such as regulatory barriers, financial risk, high capital cost of entry, marketing entry barriers, technical entry barriers, economies of scale, high cost of substitutable goods or service for consumers; (i) countervailing buying power; (j) market structure and size of market; (k) social obligations and social costs; (l) relative advantage, by way of the contribution to the economic development, by the enterprise enjoying a dominant position having or likely to have an appreciable adverse effect on competition; and (m) any other factor which the Commission may consider relevant for the inquiry.
The consolidated text prints clause (l) with the letter "(I)" and a missing space ("relative advantage,by way"); we read the clause as printed. Clause (m) is open-ended, so the list is not closed. How dominance is abused is in Section 4, explained in our article on abuse of dominant position, and the guide on abuse of dominant position under Section 4 gives a short overview.
Section 19(5): the relevant market
Section 19(5): "For determining whether a market constitutes a 'relevant market' for the purposes of this Act, the Commission shall have due regard to the 'relevant geographic market' and 'relevant product market'." It is not changed in 2023. The definitions are in Section 2(r), (s) and (t); see our article on relevant market definitions, which explains the supply-side test added to Section 2(t).
Section 19(6): relevant geographic market
Section 19(6) applies "while determining the 'relevant geographic market'". The consolidated text lists eight factors: (a) regulatory trade barriers; (b) local specification requirements; (c) national procurement policies; (d) adequate distribution facilities; (e) transport costs; (f) language; (g) consumer preferences; (h) need for secure or regular supplies or rapid after-sales services.
The 2023 Act (its Section 14(c)) inserts, after clause (h), two further clauses:
- (i) characteristics of goods or nature of services;
- (j) costs associated with switching supply or demand to other areas.
The consolidated text ends clause (h) with a full stop; with the new clauses the list runs on to (j), and we read the full stop in clause (h) as a printing point, not a limit.
Section 19(7): relevant product market
Section 19(7) applies "while determining the 'relevant product market'". The consolidated text lists six factors: (a) physical characteristics or end-use of goods; (b) price of goods or service; (c) consumer preferences; (d) exclusion of in-house production; (e) existence of specialised producers; (f) classification of industrial products. Clause (b) is printed without a closing semicolon.
The 2023 Act (its Section 14(d)) makes two changes: (i) in clause (a), after the words "end-use of goods", the words "or the nature of services" are inserted, so clause (a) reads "physical characteristics or end-use of goods or the nature of services"; and (ii) after clause (f), two clauses are inserted: (g) costs associated with switching demand or supply to other goods or services; and (h) categories of customers.
Example. A company that makes industrial adhesives is told by the Commission that it may hold a dominant position. To define the relevant product market, the Commission may consider, among other factors, whether customers could switch to other products at low cost (clause (g)) and what categories of customers the company supplies (clause (h)). The factors are inputs to the inquiry, and the text does not give any one of them greater weight than the others.
What the 2023 Amendment Act changed
| Sub-section | Before | After |
|---|---|---|
| 19(3)(c) | "... by hindering entry into the market" | Words omitted |
| 19(3)(d) | "accrual of benefits to consumers" | "benefits or harm to consumers" |
| 19(4) | Thirteen factors | Not changed |
| 19(5) | Due regard to relevant geographic and product market | Not changed |
| 19(6) | Eight factors | Ten factors: (i) characteristics of goods or nature of services; (j) costs of switching supply or demand to other areas |
| 19(7)(a) | "end-use of goods" | "end-use of goods or the nature of services" |
| 19(7) | Six factors | Eight factors: (g) costs of switching demand or supply to other goods or services; (h) categories of customers |
Using the factors in practice
The factors are what a party typically addresses in submissions, and they are worth preparing for early: an internal note of the facts on each limb helps in a response to a notice. The way an inquiry starts is in our article on Section 19(1) and (2), and the factors for combinations are in Section 20(4), covered in our article on inquiry into combinations. For the wider picture of the Commission's powers, see our guide on CCI powers and procedure.
Need help preparing for an inquiry that turns on market definition?
If a notice or complaint turns on market share, entry barriers or the definition of the relevant market, our team can organise your evidence against the factors above. Start with a legal dispute resolution discussion and bring your market data and the notice.
Key takeaways
- The Commission must have due regard to all or any of the listed factors.
- For adverse effect, clause (c) loses the words "by hindering entry into the market" and clause (d) becomes "benefits or harm to consumers".
- Dominance factors in Section 19(4) are unchanged and end with an open "any other factor" clause.
- The geographic market list gains two factors, including switching costs, and the product market list gains two, with "nature of services" in clause (a).
- The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Read next
- Inquiry on information or reference and the three-year limit
- Abuse of dominant position and predatory pricing
- Inquiry into combinations and factors considered
- Anti-competitive agreements under Section 3: guide
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.