Chapter IV - Duties, Powers and Functions of Commission
Section 32
Section 32: offshore acts with an effect on Indian competition
Section 32 allows the Competition Commission of India to examine certain conduct or combinations even when the agreement, parties or transaction are outside India, if the statutory effect test concerning a relevant market in India is met.
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Need advice on Section 32?
This article is for general information. Refer to the Competition Act, 2002 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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, 29A 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.
Introduction
The place where an agreement is signed or a transaction is completed does not, by itself, exclude CCI scrutiny. The provision's connecting requirement is an actual or likely appreciable adverse effect on competition in a relevant Indian market.
Key takeaways
Location is not decisive
The section lists offshore agreements, foreign parties, overseas dominant conduct and offshore combinations as situations in which CCI may still inquire.
Indian effect is required
CCI's power under this section depends on an actual or likely appreciable adverse effect on competition in the relevant market in India.
2024 procedural update
The inquiry provisions now expressly include section 29A after the 2023 Amendment provision commenced in September 2024.
Identify the offshore element
Establish whether the agreement, a party, the allegedly dominant enterprise, the combination or another relevant action is outside India. Section 32 expressly addresses each of these situations.
Connect the conduct to an Indian market
Analyse whether the agreement, conduct or combination has or is likely to have an appreciable adverse effect on competition in a relevant market in India. The section does not state that every foreign transaction must be notified or investigated.
Apply the appropriate inquiry procedure
The statutory inquiry links to sections 19, 20, 26, 29, 29A and 30. The specific route depends on whether the matter concerns an agreement, dominance or a combination.
Practical checklist
Do
- For cross-border conduct or transactions, document Indian customers, markets and competitive effects.
- Identify whether the matter concerns a section 3 agreement, section 4 abuse or combination before analysing the procedure.
Avoid
- Do not assume an offshore signing or foreign incorporation makes Indian competition law irrelevant.
- Do not assume every foreign arrangement is caught without the relevant Indian-market effect test.
Glossary
- Relevant market in India
- The Indian market in which the actual or likely competitive effect must be assessed under Section 32.
- Combination
- An acquisition, acquisition of control, merger or amalgamation meeting Section 5's statutory conditions.
Frequently asked questions
Can CCI inquire into an agreement signed abroad?
Yes, Section 32 expressly covers an agreement referred to in Section 3 entered into outside India, subject to its Indian-market effect requirement.
Does foreign ownership alone trigger Section 32?
No. The section requires that the agreement, dominance or combination has, or is likely to have, an appreciable adverse effect on competition in a relevant market in India.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026