Anish Jaipuriar and Sarita Rout discuss and compares the two tests in terms of any similarity or differences and try to establish a standard scope for achieving the objective of the competition law.

Abstract

In the European Union (EU), the substantive test for merger control is to ascertain whether a prospective merger would significantly impede effective competition
(SIEC) in the common market, while under India’s Competition Act, the substantive test for combinations is to determine whether there is an appreciable adverse effect on
competition (AAEC) within the relevant market. The two tests therefore play a significant role in fulfilling what is called the aim of any competition law and being the sole criteria in each of the law a clear, definitive and market friendly scope has to be established. This paper therefore discusses and compares the two tests in terms of any similarity or differences and tries to establish a standard scope for achieving the objective of the competition law.