Section 3 addresses agreements that cause or are likely to cause an appreciable adverse effect on competition. The analysis depends on relationship, market
Finin2min summary
Section 3 addresses agreements that cause or are likely to cause an appreciable adverse effect on competition. The analysis depends on relationship, market effects, efficiencies and the statutory category.
Source review date: 4 July 2026. Read with the official text and the facts of the transaction.
Legal anchors
- Sections 3 and 19
- CCI General Regulations and decisional practice
How to analyse it
- Identify whether parties are competitors, suppliers, distributors, platforms or trade associations.
- Separate horizontal from vertical restraints.
- Assess object, effect and statutory presumptions.
- Document efficiencies and less-restrictive alternatives.
Practical illustration
Two competitors agree not to bid against each other for selected customers. The arrangement raises a serious cartel concern even if not written.
What can go wrong?
- Informal industry coordination
- Exchange of future pricing
- Using trade association meetings for sensitive discussions
Evidence pack
- Contracts
- Emails and chats
- Pricing records
- Market and efficiency analysis
Decision workflow
- Freeze the facts and effective date.
- Identify the controlling Act, rule, notification, circular and jurisdictional overlay.
- Prepare a calculation or exposure note.
- Collect the evidence pack before filing, payment, signing or response.
- Record reviewer conclusion and assumptions.
Quick Q&A
Is the result automatic?
No. Identify whether parties are competitors, suppliers, distributors, platforms or trade associations.
What is the most important control?
Document efficiencies and less-restrictive alternatives.
What should be escalated?
Informal industry coordination, especially where money, deadlines, enforcement, personal liability or irreversible transaction steps are involved.
Official source trail
Secondary commentary may help interpretation, but it is not the source of law.