Section 6 of CA, 2002 : Section 6: Regulation Of Combinations
CA, 2002
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Explanation using Example
Imagine a scenario where two large telecommunications companies, Company A and Company B, plan to merge. This merger would combine their resources and customer bases, potentially giving them a dominant position in the market. Before proceeding, they must consider Section 6 of The Competition Act, 2002.
Under Section 6(1), the merger should not cause an appreciable adverse effect on competition within India. If the merger were to lead to higher prices for consumers or exclude other competitors from the market, it could be deemed to have such an effect and thus be declared void.
As per Section 6(2), Compan...
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