Competition Law

Author:Seth Dua & Associates
Profession:Seth Dua & Associates

CCI ordered Investigation against REC Power Distribution Company Ltd. and the Rural Electrification Corporation Ltd. for Abuse of Dominant Position

XYZ ("Informant") filed information against REC Power Distribution Company Ltd. ("Opposite Party") alleging an abuse of dominant position in contravention of the provisions of Section 4 of the Competition Act, 2002 ("Competition Act"). The Opposite Party was a wholly owned subsidiary of Rural Electrification Corporation Ltd. ("REC") and was the nodal agency for the implementation of the Rajeev Gandhi Grameen Vidyutikaran Yojna ("RGGVY") scheme.

It was alleged that the Opposite Party had leveraged its association with the REC in order to secure orders by giving a verbal promise that it would be able to get the approval from REC as the head of RGGVY scheme of REC is its Chief Executive Officer ("CEO"). Accordingly, the Informant prayed that the Opposite Party be stopped from bidding a consultancy work of project funded by REC and to stop the alleged anti-competitive activity being promoted by REC and the Opposite Party.

The Competition Commission of India ("CCI") inter alia drew out two relevant markets for the determination of contravention of section 4 of the Competition Act. The first relevant market being the 'market for financing of rural electrification schemes' and the second relevant market being the 'market for providing consultancy services in power projects'. On the point of abuse of dominance it was inter alia noted that the act of leveraging ultimately excluded other power utilities from the market for providing consultancy services in power projects appeared to be violative of section 4(2)(e) of the Competition Act and resulted in exclusionary conduct amounting to denial of market access to other utilities who were capable of preparing DPR's, which contravened section 4(2)(c) of the Competition Act.

Due to the foregoing reasons, the CCI vide order dated January 13, 2015 opined that prima facie the conduct of the REC and the Opposite Party appeared to be anti-competitive and hence, merits investigation by the Director General under section 26(1) of the Competition Act.

CCI Ordered Investigation against DLF Universal Limited for Abusing its Dominant Position

Mr. Vijay Kapoor ("Informant") filed information against M/s DLF Universal Limited ("Opposite Party") alleging inter alia contravention of section 4 of the Competition Act in development and sale of residential units in Gurgaon as the Opposite Party imposed extremely harsh and one sided terms and conditions in the 'Agreement to Sell' ("Agreement").

The CCI observed that the relevant market was the provision of services for development and sale...

To continue reading