What conduct does Section 3 of the Competition Act prohibit?

Section 3 prohibits agreements in respect of production, supply, distribution, storage, acquisition or control of goods or services which cause or are likely to cause an appreciable adverse effect on competition in India. Certain horizontal agreements between competitors, including those relating to prices, output, market sharing and bid rigging, are presumed to have such an effect, subject to the exceptions in the section.

How does the Competition Commission of India begin an investigation?

The Commission may act on information received, on a reference from a government or statutory authority, or on its own motion. Where it forms a prima facie opinion that a contravention exists, it directs the Director General to investigate. The Director General's report is then considered by the Commission, and the parties are given an opportunity to be heard before any final order is passed.

What is the lesser penalty framework?

The Competition Act, 2002 provides for a reduction in penalty for a party to a cartel that makes a full and true disclosure in respect of the alleged contravention, subject to the conditions prescribed in the applicable regulations. The extent of reduction depends on the priority of the disclosure and on the value of the evidence provided, and continued cooperation is a condition of the benefit.

Where does an appeal from a CCI order lie?

An appeal from an order of the Competition Commission of India lies to the National Company Law Appellate Tribunal within the period prescribed under the Act, and a further appeal lies to the Supreme Court of India. Conditions relating to deposit of penalty may apply. The grounds and scope of appellate interference are governed by the Act.

Who is a data fiduciary under the DPDP Act?

The Digital Personal Data Protection Act, 2023 defines a data fiduciary as any person who alone or in conjunction with others determines the purpose and means of processing personal data. Data fiduciaries bear the principal obligations under the Act, including in relation to notice, consent, purpose limitation, security safeguards and breach intimation. Certain entities may be notified as significant data fiduciaries with additional obligations.

What is the Central Consumer Protection Authority?

The Central Consumer Protection Authority is established under the Consumer Protection Act, 2019 to regulate matters relating to violation of consumer rights, unfair trade practices and false or misleading advertisements, and to promote and protect the rights of consumers as a class. It has powers of inquiry and investigation and may pass directions in the circumstances set out in the Act.

What is the difference between adjudication and compounding under the Companies Act?

Adjudication is the process by which a designated adjudicating officer determines whether a default has occurred and imposes the penalty provided by the statute. Compounding is a mechanism by which certain offences may be settled on payment of an amount, in the circumstances and before the authority specified in the Companies Act, 2013. Availability depends on the nature of the default.

Should a company conduct an internal investigation before responding to a regulator?

Whether to investigate internally, and how, depends on the nature of the allegation, the exposure involved and the timelines set by the regulator. An internal review can establish the factual position before a response is filed, but it also creates a record. Questions of privilege, document preservation and the sequence of disclosure are ordinarily considered before an internal investigation begins.

Regulatory, Competition & Compliance

Regulatory and competition practice concerns the obligations imposed on businesses by sectoral and cross-sectoral regulators, and representation when those obligations are alleged to have been breached. Sagar & Sagar Law Offices advises on and appears in proceedings under the Competition Act, 2002, the Companies Act, 2013, the Consumer Protection Act, 2019 and the Digital Personal Data Protection Act, 2023, before the Competition Commission of India, the Ministry of Corporate Affairs, consumer authorities and appellate tribunals. Work covers preventive compliance advisory, internal investigations, regulatory filings, and defence in investigation, adjudication and appellate proceedings.

Regulatory exposure in India is cumulative rather than compartmentalised. Conduct that attracts the attention of one regulator frequently engages others: a distribution arrangement may raise questions under competition law and consumer law simultaneously; a data incident may engage the data protection framework, information technology law, and sectoral directions applicable to the business. The same facts are then examined by different authorities applying different standards, at different speeds, with different consequences.

The practice at Sagar & Sagar Law Offices operates across that field rather than within a single statute. Work covers the design and review of compliance frameworks before a question arises, internal investigation where one does, engagement with regulators during inquiry and inspection, and representation through adjudication and appeal. Where regulatory exposure carries a criminal dimension, the position is coordinated with the firm's White Collar Crime & Financial Crime Defence practice.

Scope of work

Competition law — anti-competitive agreements

Conduct examined under Section 3 of the Competition Act, 2002.

Advice on horizontal arrangements between competitors, including price fixing, market allocation, output restriction and bid rigging
Advice on vertical arrangements, including exclusive supply and distribution, tie-in arrangements, refusal to deal and resale price maintenance
Assessment of distribution, franchise, supply and agency arrangements for competition law exposure
Representation in investigations initiated by the Competition Commission of India
Representation during investigation by the Director General, including in response to information requisitions and depositions
Advice on applications under the lesser penalty framework
Advice on settlement and commitment mechanisms available under the Act
Defence of associations and their members in proceedings concerning collective conduct

Competition law — abuse of dominance

Conduct examined under Section 4 of the Competition Act, 2002.

Advice on assessment of dominance, including relevant product and geographic market definition
Advice on pricing conduct, including predatory pricing, excessive pricing and discriminatory pricing
Advice on refusal to deal, denial of market access and leveraging across markets
Advice on exclusivity, bundling and platform conduct
Representation in information and inquiry proceedings before the Commission
Advice on remedies, behavioural directions and cease and desist orders

Competition law — merger control and advisory

Transactional and preventive competition work.

Assessment of whether a transaction constitutes a notifiable combination
Advice on applicable thresholds, exemptions and the local nexus requirement
Preparation and filing of combination notices with the Competition Commission of India
Advice on gun jumping exposure and permissible conduct before clearance
Advice on remedies and modifications offered to secure clearance
Competition compliance programmes, policies and training material
Competition audits of commercial arrangements and internal documents

Competition law — appeals and enforcement

Challenges to orders and enforcement of outcomes.

Appeals to the National Company Law Appellate Tribunal against orders of the Commission
Appeals to the Supreme Court of India
Writ proceedings before the High Courts in appropriate cases
Advice on penalty computation and its basis
Advice on compensation applications arising from findings of contravention

Corporate and company law compliance

Obligations arising under the Companies Act, 2013 and administered by the Ministry of Corporate Affairs.

Advice on statutory compliance requirements applicable to companies
Compliance reviews and identification of historical non-compliance
Advice on adjudication and compounding of offences under the Companies Act, 2013
Representation before the Registrar of Companies and the Regional Director
Advice on directors' duties, disqualification and related proceedings
Advice on related party transactions and the approvals they require
Advice on corporate social responsibility obligations and reporting
Representation in proceedings arising from inspection or inquiry into a company's affairs
Advice in relation to investigations by the Serious Fraud Investigation Office

Consumer protection and market conduct

Obligations owed to consumers and the authorities enforcing them.

Advice on obligations under the Consumer Protection Act, 2019
Advice on unfair trade practices and misleading advertisement exposure
Advice on product liability and the standards applicable to it
Advice on obligations applicable to electronic commerce platforms and sellers
Representation in proceedings before the Central Consumer Protection Authority
Representation before the National, State and District Consumer Disputes Redressal Commissions
Review of advertising, marketing and packaging material for regulatory consistency
Advice on grievance redressal mechanisms and their statutory requirements

Data protection and digital regulation

Obligations concerning personal data and digital operations.

Advice on obligations of data fiduciaries under the Digital Personal Data Protection Act, 2023
Advice on notice, consent and purpose limitation requirements
Advice on the rights of data principals and mechanisms for exercising them
Advice on obligations under the Information Technology Act, 2000 and the rules made under it
Advice on intermediary obligations and due diligence requirements
Advice on personal data breach response and notification obligations
Data protection policies, privacy notices and internal processing documentation
Advice on data processing arrangements with vendors and processors
Advice on cross-border transfer of personal data

Regulatory investigations and internal compliance

Work undertaken when conduct is questioned, or before it is.

Design and review of internal compliance frameworks, codes and policies
Compliance audits across applicable regulatory frameworks
Internal investigations into alleged non-compliance or misconduct
Whistleblower complaint assessment and response
Advice on document preservation and privilege during investigation
Preparation of responses to regulatory queries, notices and inspection findings
Representation in adjudication and penalty proceedings
Advice on voluntary disclosure, remediation and undertakings
Advice to boards and audit committees on regulatory exposure

Environmental, social and governance obligations

ESG & Sustainability covers sustainability reporting, corporate social responsibility, environmental compliance and governance obligations in detail.

Forums and authorities

Competition Commission of India and the office of the Director General
National Company Law Appellate Tribunal, in competition appeals
Ministry of Corporate Affairs, the Registrar of Companies and the Regional Director
Serious Fraud Investigation Office
Central Consumer Protection Authority
National, State and District Consumer Disputes Redressal Commissions
Data Protection Board constituted under the Digital Personal Data Protection Act, 2023
Sectoral regulators, according to the industry concerned
High Courts, in writ and appellate jurisdiction
Supreme Court of India

Who we act for

Companies subject to sectoral and cross-sectoral regulation
Boards, audit committees and independent directors
Trade associations and industry bodies
Electronic commerce platforms and technology businesses
Banks, non-banking financial companies and financial institutions
Manufacturers, distributors and franchisors
Data fiduciaries and processors
Parties to transactions requiring competition clearance
Individuals named in regulatory proceedings

How we approach this work

Exposure mapped across regulators, not within one.

The same conduct is usually examined by more than one authority. Advice identifies the full set of frameworks engaged before addressing any of them individually.

Compliance documented so that it can be demonstrated.

A compliance position that cannot be evidenced at the time of inquiry is of limited assistance. Policies, records and internal documentation are prepared with that use in view.

Investigation responses prepared as part of the record.

Responses to requisitions, depositions and notices are drafted on the footing that they will be relied upon at adjudication and on appeal.

Awareness of criminal exposure.

Regulatory findings in India frequently carry consequences under other statutes. Where that risk exists, it is identified at the outset rather than after adjudication.

Frequently asked questions

What conduct does Section 3 of the Competition Act prohibit?: Section 3 prohibits agreements in respect of production, supply, distribution, storage, acquisition or control of goods or services which cause or are likely to cause an appreciable adverse effect on competition in India. Certain horizontal agreements between competitors, including those relating to prices, output, market sharing and bid rigging, are presumed to have such an effect, subject to the exceptions in the section.
How does the Competition Commission of India begin an investigation?: The Commission may act on information received, on a reference from a government or statutory authority, or on its own motion. Where it forms a prima facie opinion that a contravention exists, it directs the Director General to investigate. The Director General's report is then considered by the Commission, and the parties are given an opportunity to be heard before any final order is passed.
What is the lesser penalty framework?: The Competition Act, 2002 provides for a reduction in penalty for a party to a cartel that makes a full and true disclosure in respect of the alleged contravention, subject to the conditions prescribed in the applicable regulations. The extent of reduction depends on the priority of the disclosure and on the value of the evidence provided, and continued cooperation is a condition of the benefit.
Where does an appeal from a CCI order lie?: An appeal from an order of the Competition Commission of India lies to the National Company Law Appellate Tribunal within the period prescribed under the Act, and a further appeal lies to the Supreme Court of India. Conditions relating to deposit of penalty may apply. The grounds and scope of appellate interference are governed by the Act.
Who is a data fiduciary under the DPDP Act?: The Digital Personal Data Protection Act, 2023 defines a data fiduciary as any person who alone or in conjunction with others determines the purpose and means of processing personal data. Data fiduciaries bear the principal obligations under the Act, including in relation to notice, consent, purpose limitation, security safeguards and breach intimation. Certain entities may be notified as significant data fiduciaries with additional obligations.
What is the Central Consumer Protection Authority?: The Central Consumer Protection Authority is established under the Consumer Protection Act, 2019 to regulate matters relating to violation of consumer rights, unfair trade practices and false or misleading advertisements, and to promote and protect the rights of consumers as a class. It has powers of inquiry and investigation and may pass directions in the circumstances set out in the Act.
What is the difference between adjudication and compounding under the Companies Act?: Adjudication is the process by which a designated adjudicating officer determines whether a default has occurred and imposes the penalty provided by the statute. Compounding is a mechanism by which certain offences may be settled on payment of an amount, in the circumstances and before the authority specified in the Companies Act, 2013. Availability depends on the nature of the default.
Should a company conduct an internal investigation before responding to a regulator?: Whether to investigate internally, and how, depends on the nature of the allegation, the exposure involved and the timelines set by the regulator. An internal review can establish the factual position before a response is filed, but it also creates a record. Questions of privilege, document preservation and the sequence of disclosure are ordinarily considered before an internal investigation begins.

For enquiries relating to this practice area, please use the details on the Contact page.

Overview