Section 26 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 26 of the Competition Act, 2002 is the step-by-step procedure for what happens after the Commission receives information or a reference under Section 19: the Commission forms an opinion on whether there is a prima facie case, the Director General investigates, the parties get a copy of the report and can object, and the Commission decides whether to close the matter or inquire further. The Competition (Amendment) Act, 2023 adds a bar on repeat inquiries, a supplementary investigation step and a mandatory show-cause notice before the final order.
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. If there is a prima facie case, the Commission directs the Director General to investigate; if not, it closes the matter. After 2023 the Commission may not inquire into the same or substantially the same facts and issues already decided in a previous order, may ask for further investigation and a supplementary report, and before passing a final order must issue a show-cause notice and give a reasonable opportunity of being heard. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 26(1): prima facie opinion and direction to the Director General
Section 26(1) reads: "On receipt of a reference from the Central Government or a State Government or a statutory authority or on its own knowledge or information received under section 19, if the Commission is of the opinion that there exists a prima facie case, it shall direct the Director General to cause an investigation to be made into the matter". The proviso adds that if the subject matter of an information received is, in the opinion of the Commission, substantially the same as or has been covered by any previous information received, the new information may be clubbed with the previous information.
The 2023 Act does not amend sub-section (1). The Director General's appointment is in Section 16 (see our article on Sections 16 and 17) and his powers of investigation are in Section 41 (see our article on search and seizure). How information and references reach the Commission is in our article on Section 19(1) and (2).
Section 26(2): no prima facie case
Where on receipt of a reference or information the Commission is of the opinion that there exists no prima facie case, "it shall close the matter forthwith and pass such orders as it deems fit and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be." This sub-section is not amended in 2023.
New Section 26(2A): same facts already decided
The 2023 Act (its Section 19(a)) inserts after sub-section (2): "(2A) The Commission may not inquire into agreement referred to in section 3 or conduct of an enterprise or group under section 4, if the same or substantially the same facts and issues raised in the information received under section 19 or reference from the Central Government or a State Government or a statutory authority has already been decided by the Commission in its previous order."
The sub-section covers an inquiry into an agreement under Section 3 or the conduct of an enterprise or group under Section 4. The test is that the same or substantially the same facts and issues have already been decided by the Commission in its previous order. The text does not say whether the earlier order must have involved the same parties, and we add no such condition.
If you are the subject of a fresh filing that seems to repeat an earlier matter, a legal dispute resolution review of the two sets of facts and the earlier order is the starting point.
Section 26(3), (3A) and (3B): the report and the supplementary report
Sub-section (3) says the Director General, on receipt of the direction under sub-section (1), "shall ... submit a report on his findings within such period as may be specified by the Commission". The 2023 Act (Section 19(b)) inserts two new sub-sections:
- "(3A) If, after consideration of the report of the Director General referred to in sub-section (3), the Commission is of the opinion that further investigation is required, it may direct the Director General to investigate further into the matter."
- "(3B) The Director General shall, on receipt of direction under sub-section (3A), investigate the matter and submit a supplementary report on his findings within such period as may be specified by the Commission."
The periods are set by the Commission, not by the Act. The text prints no day-count for either report.
Section 26(4) to (6): copies and objections
Sub-section (4): the Commission "may forward a copy of the report referred to in sub-section (3) to the parties concerned", with a proviso that where the investigation is based on a reference from the Government or a statutory authority, the Commission "shall forward a copy of the report" to that body. The 2023 Act (Section 19(c)) replaces "sub-section (3)" at both places with "sub-sections (3) and (3B)", so the copy covers the supplementary report too.
Sub-section (5): if the report recommends that there is no contravention, the Commission "shall invite objections or suggestions" from the Government, statutory authority or parties concerned. The 2023 Act (Section 19(d)) replaces "sub-section (3)" with "sub-sections (3) and (3B)".
Sub-section (6): if, after consideration of the objections and suggestions, if any, the Commission agrees with the Director General's recommendation, it "shall close the matter forthwith and pass such orders as it deems fit and communicate its order". It is not amended.
Section 26(7) and (8): further investigation or inquiry
Sub-section (7): if, after considering the objections or suggestions, the Commission is of the opinion that further investigation is called for, it "may direct further investigation in the matter by the Director General or cause further inquiry to be made by in the matter or itself proceed with further inquiry in the matter in accordance with the provisions of this Act". The consolidated text prints "inquiriy" and "to be made by in the matter"; we flag these as printing slips and quote them as printed. It is not amended in 2023.
Sub-section (8): if the report recommends that there is contravention and the Commission is of the opinion that further inquiry is called for, "it shall inquire into such contravention in accordance with the provisions of this Act". The 2023 Act (Section 19(e)) replaces "sub-section (3)" with "sub-sections (3) and (3B)".
New Section 26(9): the show-cause notice before the final order
The 2023 Act (Section 19(f)) inserts after sub-section (8): "(9) Upon completion of the investigation or inquiry under sub-section (7) or sub-section (8), as the case may be, the Commission may pass an order closing the matter or pass an order under section 27, and send a copy of its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be: Provided that before passing such order, the Commission shall issue a show-cause notice indicating the contraventions alleged to have been committed and such other details as may be specified by regulations and give a reasonable opportunity of being heard to the parties concerned."
Two points. The order under Section 27 is the penalty and directions section, covered in our article on orders and penalty after inquiry. And the details of the show-cause notice beyond the alleged contraventions are "as may be specified by regulations"; our overview of the General Regulations, 2024 covers the Commission's 2024 regulations on prima facie opinion and investigation.
Example. Following information that three local distributors fixed margins, the Commission directs an investigation. The Director General submits a report that recommends a contravention. The Commission, after considering it, decides that further inquiry is called for under sub-section (8). Before it passes a final order under Section 27, sub-section (9) requires a show-cause notice indicating the contraventions alleged and a reasonable opportunity of being heard.
What the 2023 Amendment Act changed in Section 26
| Sub-section | Before | After |
|---|---|---|
| 26(1), (2), (6), (7) | As printed | Not changed |
| 26(2A) | None | Commission may not inquire if the same or substantially the same facts and issues were already decided in a previous order |
| 26(3A), (3B) | None | Further investigation and supplementary report |
| 26(4), (5), (8) | References to the report under sub-section (3) | "sub-sections (3) and (3B)" |
| 26(9) | None | Order closing the matter or under Section 27, after a show-cause notice and hearing |
For the full process from the filing side, see our guides on how to file a CCI complaint and on CCI powers, procedure and enforcement, and for hearings the practice guide on appearing before the CCI.
Need help at any stage of a Commission inquiry?
Whether you are on the receiving end of a Director General report, drafting objections or preparing a reply to a show-cause notice, deadlines and content matter. Speak to our legal dispute resolution team and bring the notice or report.
Key takeaways
- The Commission directs the Director General to investigate if it forms the opinion that there exists a prima facie case; otherwise it closes the matter.
- After the 2023 Act, the Commission may not inquire into the same or substantially the same facts and issues already decided in a previous order.
- It may direct further investigation and receive a supplementary report from the Director General.
- A show-cause notice and a reasonable opportunity of being heard are required before the final order under sub-section (9).
- 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
- Orders and penalty after inquiry under Section 27
- Inquiry on information or reference and the three-year limit
- Director General: investigation, search and seizure
- Filing, inquiry and confidentiality under the CCI General Regulations, 2024
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.