Section 20 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 20 of the Competition Act, 2002 is the Commission's inquiry provision for combinations. It lets the Commission inquire on its own knowledge or information, requires it to inquire on receipt of a notice, allows the Central Government to revise the asset and turnover values used in Section 5, and lists fourteen factors to which the Commission must have due regard. The Competition (Amendment) Act, 2023 extends sub-section (1) to the new deal value clause, widens the revision power in sub-section (3), and changes "combination" to "concentration" in one factor.
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 may inquire into a combination on its own knowledge or information, but not after one year from the date on which the combination has taken effect. The Central Government may enhance, reduce or keep at the same level the values for Section 5, and the list now includes the value of transaction. Factor (c) now speaks of "level of concentration". The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 20(1): inquiry on own knowledge or information
Section 20(1) of the consolidated text reads: "The Commission may, upon its own knowledge or information relating to acquisition referred to in clause (a) of section 5 or acquiring of control referred to in clause (b) of section 5 or merger or amalgamation referred to in clause (c) of that section, inquire into whether such a combination has caused or is likely to cause an appreciable adverse effect on competition in India". The proviso adds that "the Commission shall not initiate any inquiry under this subsection after the expiry of one year from the date on which such combination has taken effect."
The 2023 Act (its Section 15(a)) directs that, for the words, brackets and letter "clause (c) of that section", the words "clause (c) of section 5 or acquisition of any control, shares, voting right or assets of an enterprise, merger or amalgamation referred to in clause (d) of that section" be substituted. Applying that to the base text, the sub-section reads: "...or merger or amalgamation referred to in clause (c) of section 5 or acquisition of any control, shares, voting right or assets of an enterprise, merger or amalgamation referred to in clause (d) of that section, inquire into whether such a combination has caused or is likely to cause an appreciable adverse effect on competition in India". The amending words fit the base text, which has the phrase "clause (c) of that section" once. The one-year proviso is not amended and still reads "one year".
The consolidated text prints the first reference to the sub-section in the proviso as "subsection" without a hyphen. In practice, the combined effect is that a transaction caught only by the deal value test in Section 5(d) can also be inquired into by the Commission on its own knowledge or information, within one year of taking effect. Our article on Section 5 thresholds explains clause (d).
If a transaction has closed and you are unsure whether it should have been notified, a financial and legal due diligence review of the facts is the first step, because the one-year period runs from the date the combination has taken effect.
Section 20(2): inquiry on notice
Section 20(2): "The Commission shall, on receipt of a notice under sub-section (2) of section 6 ..., inquire whether a combination referred to in that notice or reference has caused or is likely to cause an appreciable adverse effect on competition in India." The consolidated text shows a footnote mark where words about a reference under Section 21(1) were omitted by the 2007 amendment; the leftover words "or reference" remain in the sentence. The 2023 Act does not amend sub-section (2). It speaks only of a notice under sub-section (2) of Section 6. The short-form notice route in Section 6(4) is dealt with in our article on Section 6(4) to (9), and the text of Section 6(6) refers to "the period referred to in sub-section (1) of section 20".
Section 20(3): revision of values
The consolidated text of sub-section (3) says: "Notwithstanding anything contained in section 5, the Central Government shall, on the expiry of a period of two years from the date of commencement of this Act and thereafter every two years, in consultation with the Commission, by notification, enhance or reduce, on the basis of the wholesale price index or fluctuations in exchange rate of rupee or foreign currencies, the value of assets or the value of turnover, for the purposes of that section."
The 2023 Act (its Section 15(b)) substitutes for the words from "by notification" to "the value of turnover" the words: "enhance or reduce by notification, or keep at the same level, on the basis of the wholesale price index or fluctuations in exchange rate of rupee or foreign currencies, or such factors that in its opinion are relevant in this matter, the value of assets or the value of turnover or value of transaction". The two-yearly rhythm in the words before and after the substituted portion is retained.
| Point | Before (consolidated text) | After (2023 Act) |
|---|---|---|
| Frequency | On expiry of two years from commencement and every two years | Same words retained |
| What the Central Government may do | Enhance or reduce | Enhance or reduce by notification, or keep at the same level |
| Basis | Wholesale price index or fluctuations in exchange rate of rupee or foreign currencies | Same, "or such factors that in its opinion are relevant in this matter" |
| Values covered | Value of assets or value of turnover | Value of assets or value of turnover or value of transaction |
No notification under sub-section (3) is in the sources consulted. The asset and turnover values printed in Section 5, and the value of transaction in Section 5(d), should therefore be checked against the current notified position.
Section 20(4): the factors
For determining whether a combination would have the effect of or is likely to have an appreciable adverse effect on competition in the relevant market, the Commission "shall have due regard to all or any of the following factors":
(a) actual and potential level of competition through imports in the market; (b) extent of barriers to entry into the market; (c) level of concentration in the market (as amended; formerly "level of combination in the market"); (d) degree of countervailing power in the market; (e) likelihood that the combination would result in the parties to the combination being able to significantly and sustainably increase prices or profit margins; (f) extent of effective competition likely to sustain in a market; (g) extent to which substitutes are available or are likely to be available in the market; (h) market share, in the relevant market, of the persons or enterprise in a combination, individually and as a combination; (i) likelihood that the combination would result in the removal of a vigorous and effective competitor or competitors in the market; (j) nature and extent of vertical integration in the market; (k) possibility of a failing business; (l) nature and extent of innovation; (m) relative advantage, by way of the contribution to the economic development, by any combination having or likely to have appreciable adverse effect on competition; (n) whether the benefits of the combination outweigh the adverse impact of the combination, if any.
The 2023 Act (its Section 15(c)) directs that in clause (c), for the word "combination", the word "concentration" be substituted. The base text has the word "combination" in clause (c) once ("level of combination in the market"), so the amendment fits. Printing slips in the consolidated text: clause (a) has no closing semicolon, clause (g) reads "arc" for "are", and clause (l) is printed as "(I)". Factors (m) and (n) set out the economic development and benefit weighing in the text itself; we add no test beyond the words.
Example. A manufacturer of home appliances acquires a smaller rival. The Commission considers the market share of the combined firm (factor (h)), whether a vigorous competitor is removed (factor (i)) and whether the benefits outweigh any adverse impact (factor (n)). Each is a factor to be given due regard, not a rule that decides the matter alone.
What the 2023 Amendment Act changed in Section 20
| Sub-section | Before | After |
|---|---|---|
| 20(1) | Inquiry for clauses (a), (b) and (c) of Section 5 | Also acquisition of control, shares, voting right or assets, merger or amalgamation referred to in clause (d) |
| 20(1) proviso | One year | Not changed |
| 20(2) | Notice under Section 6(2) | Not changed |
| 20(3) | Enhance or reduce; assets or turnover | Enhance, reduce or keep at the same level; also "such factors that in its opinion are relevant"; also value of transaction |
| 20(4)(c) | Level of combination | Level of concentration |
Notice and standstill are dealt with in our article on Section 6(1) to (3); the later steps are in Sections 29 and 30, explained in our article on investigation of combinations. A general guide is in CCI approval for mergers and acquisitions, and an overview of the regime is in the post on CCI merger control, combinations and thresholds.
Need help assessing a completed or planned combination?
Whether a deal falls within Section 5, whether the one-year period for an inquiry is running and which factors will matter all depend on documents. Our team can review your transaction as part of financial and legal due diligence.
Key takeaways
- The Commission may inquire into a combination on its own knowledge or information, but not after one year from the date it has taken effect.
- After the 2023 Act, sub-section (1) also reaches the deal value clause in Section 5(d).
- The Central Government may enhance, reduce or keep at the same level the values, now including the value of transaction.
- Factor (c) in sub-section (4) reads "level of concentration in the market".
- 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
- Combination thresholds: assets, turnover and deal value
- Notice of combination to CCI and the standstill period
- Procedure for investigation of combinations
- Regulation of combinations: Sections 5 and 6 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.