Sections 32-33 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 32 of the Competition Act, 2002 says that the Commission has power to inquire into an agreement, abuse of dominant position or combination even though it was made, or the party is, outside India, if it has or is likely to have an appreciable adverse effect on competition in the relevant market in India. Section 33 lets the Commission temporarily restrain an act during an inquiry. The Competition (Amendment) Act, 2023 makes one change, to the list of sections in Section 32. Section 33 is not touched.
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. The Commission has power to inquire into agreements, dominance or combinations outside India if they have, or are likely to have, an appreciable adverse effect on competition in the relevant market in India, in accordance with Sections 19, 20, 26, 29, 29A and 30, and to pass the orders it deems fit. During an inquiry it may temporarily restrain an act, even without notice, where it deems it necessary. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
Section 32: acts taking place outside India
Section 32 begins: "The Commission shall, notwithstanding that,— (a) an agreement referred to in section 3 has been entered into outside India; or (b) any party to such agreement is outside India; or (c) any enterprise abusing the dominant position is outside India; or (d) a combination has taken place outside India; or (e) any party to combination is outside India; or (f) any other matter or practice or action arising out of such agreement or dominant position or combination is outside India, have power to inquire in accordance with the provisions contained in sections 19, 20, 26, 29 and 30 of the Act into such agreement or abuse of dominant position or combination if such agreement or dominant position or combination has, or is likely to have, an appreciable adverse effect on competition in the relevant market in India and pass such orders as it may deem fit in accordance with the provisions of this Act."
The consolidated text prints clause (a) with the words "India;or" run together; the 2007 amendment inserted the words about the listed sections and about orders, as the footnote marks show. These are printing and history points and do not change the rule.
The test in Section 32 is the effect in India. A foreign location of the agreement, a party, the abusing enterprise, the combination or related practice does not take the matter outside the Commission's power if the agreement, dominant position or combination "has, or is likely to have, an appreciable adverse effect on competition in the relevant market in India". The Act does not use the word "extraterritorial"; we use it as a short label for the clauses.
Example. Two overseas manufacturers agree between themselves on prices at which they will sell a specialised component to Indian buyers. Neither has a place of business in India, and the agreement was made abroad. Under clauses (a) and (b), those facts do not by themselves remove the matter from the Commission's reach, if the agreement has, or is likely to have, an appreciable adverse effect on competition in the relevant market in India. Whether a given agreement meets the test is a question of facts and of the factors discussed in our article on Section 19(3) to (7).
If your group has dealings in India but is headquartered elsewhere, a legal dispute resolution review can identify which of your arrangements could draw an inquiry here.
What the 2023 Act changed in Section 32
The 2023 Act (its Section 24) directs that for the figures and word "29 and 30", the figures, letter and word "29, 29A and 30" be substituted. In the base text, the figures "29 and 30" occur once, in the list "sections 19, 20, 26, 29 and 30". After the amendment the list reads "sections 19, 20, 26, 29, 29A and 30". The amending clause fits the base text without difficulty.
| Point | Before (consolidated text) | After (2023 Act) |
|---|---|---|
| Sections named for the inquiry | 19, 20, 26, 29 and 30 | 19, 20, 26, 29, 29A and 30 |
| Reach to acts outside India | Clauses (a) to (f) | Same |
| Test | Appreciable adverse effect on competition in the relevant market in India | Same |
Section 29A is the new section on the statement of objections and modification of combinations; see our article on Section 29A. Section 20 is explained in our article on inquiry into combinations, and Section 26 in our article on the procedure for inquiry. For company-law aspects of cross-border mergers, which are a separate regime, see our post on cross-border mergers of Indian and foreign companies.
Section 33: interim orders
The consolidated text prints Section 33 under the heading "Power to issue interim orders" (the 2007 amendment replaced "Power to grant interim relief"). It reads: "Where during an inquiry, the Commission is satisfied that an act in contravention of sub-section (1) of section 3 or sub-section (1) of section 4 or section 6 has been committed and continues to be committed or that such act is about to be committed, the Commission may, by order, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such party, where it deems it necessary."
Points to note:
- When: "during an inquiry". The power is available while the inquiry is going on.
- The satisfaction: the Commission must be satisfied that an act in contravention of Section 3(1), Section 4(1) or Section 6 has been committed and continues to be committed, or is about to be committed.
- The order: it "may, by order, temporarily restrain any party from carrying on such act".
- How long: until the conclusion of the inquiry or until further orders.
- Notice: the order can be made "without giving notice to such party, where it deems it necessary".
The text does not say how an affected party may ask for the order to be reconsidered, and we do not supply a procedure. The 2023 Act does not amend Section 33. The earlier form of Section 33 (footnote 59) included other provisions that were replaced in 2007; we say only that the printed section now consists of the single paragraph above.
Penalties for non-compliance with orders of the Commission are in Section 42, covered in a later article of this series. Appeal rights are in Section 53A, which lists Section 33 among the sections under which orders can be appealed; see our article on the Appellate Tribunal. A short overview of the Commission's powers is in our guide on CCI powers and on powers, procedure and enforcement.
Section 34
Section 34 is printed in the consolidated text as "Omitted by the Competition (Amendment) Act, 2007 (39 of 2007 with effect from 12th October 2007)". It has no article of its own, and we do not describe what it said.
What changed in 2023 across Sections 32 to 34
| Section | Before | After |
|---|---|---|
| 32 | Inquiry in accordance with sections 19, 20, 26, 29 and 30 | Sections 19, 20, 26, 29, 29A and 30 |
| 33 | Temporary restraint during an inquiry | Not changed |
| 34 | Omitted in 2007 | Not changed |
Need help with a cross-border competition question?
If an arrangement made abroad or with a foreign counterparty touches the Indian market, or if you are facing an interim restraint, our team can read Sections 32 and 33 against the facts. Speak to us about legal dispute resolution and bring the documents.
Key takeaways
- Section 32 gives the Commission power to inquire into agreements, dominance and combinations even where they are made, or a party is, outside India.
- The test is an appreciable adverse effect, or likelihood of it, on competition in the relevant market in India.
- The 2023 Act adds Section 29A to the sections in accordance with which the inquiry proceeds.
- Section 33 lets the Commission temporarily restrain an act during an inquiry, even without notice where it deems it necessary.
- 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 on combinations and deemed approval
- Appearance before the Commission and its procedure
- Statement of objections and modifications under Section 29A
- Competition Act 2023 amendment: key changes
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.