law: The Competition Act, 2002 
  20. Inquiry into
  
  combination by Commission.-
  1.  
  
    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 amalgamat on 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: Provided that
  
  the Commission shall not initiate any inquiry under this sub-section after the
  
  expiry of one year from the date on which such combination has taken effect.
  2.  
  
    The
  
  Commission shall, on receipt of a notice under sub-section (2) of section 6 or
  
  upon receipt of a reference under sub-section (1) of section 21, 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.
  3.  
  
    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.
  4.  
  
  
  
    For
  
  the purposes of 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, name y:- 
  a.   actual and potential
  
  level of competition through imports in the market;
  b.   extent of barriers to
  
  entry into the market;
  c.   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.