SECTION 5 & SECTION 6: Combinations and Regulations for Combinations.

Section 5 of the Competition Act, 2002 deals with combinations and prohibits anti-competitive
agreements or practices. It states that any combination, which causes or is likely to cause an
appreciable adverse effect on competition (AAEC) within India, will be considered void. The section
defines combination as any acquisition or merger between enterprises or acquiring control over
enterprises or assets.

Section 6 of the Competition Act, 2002 deals with the regulation of combinations. It establishes the
Competition Commission of India (CCI) as the regulatory authority to oversee and approve or
disapprove combinations. The section requires that any combination that exceeds the specified asset
or turnover thresholds must be notified to the CCI within 30 days of the trigger event. The CCI then
examines the combination and determines whether it may have an adverse effect on competition in the
market, and if necessary, it can direct modifications or remedies to address the concerns.

NEED FOR COMPETITION IN DIGITALISATION

Innovation is the engine of this sector hence, healthy competition is required to maintain a favourable
atmosphere for the competitors to work for the development of digitalisation. A prime example of this
is Reddit.

Initially, Reddit operated solely as a web-based platform, prompting users to resort to third-party
applications to replicate the Reddit experience on mobile. Multiple developers had been vying with
one another to offer users a satisfactory Reddit experience on their mobile devices. In 2015, Reddit
acquired Alien Blue, a popular Reddit mod app, and subsequently launched the official Reddit app.
While Reddit's actions were entirely lawful, they inadvertently disrupted healthy competition. The
current iteration of the Reddit app is buggy and filled with bots today.

Moreover, notable applications such as WhatsApp, Instagram, Facebook, and YouTube have all come
under the Meta Inc. umbrella. These applications, which once had the potential to compete against
each other, are now consolidated under one dominant player, each serving distinct purposes.