Trade unions were formed to collectively represent the interests of workers. They help in achieving parity in bargaining powers for the workers to negotiate for adequate working terms and conditions. The activities of trade unions are based on collective action which often clashes with competition law, thus prohibiting collective actions in commercial spaces. Currently, there is no clarity on the nature of liability of trade unions under the current Competition Law. The Supreme Court has only further complicated the position of law through its judgment in the Coordination Committee Case. This article unpacks this complicated position of law and argues for a need to introduce exemptions for trade unions under the current competition law regime. The applicability of competition law to trade unions is then proposed to be determined by a three-step test which balances the role of the Competition Commission of India and the labour authorities. The test seeks to stabilise the collective bargaining of trade unions with the implementation of competition law.