Case No. 93 of 2014. Case: CSC Forum Vs CSC e-governance Services India Ltd.. Competition Commision of India

Case NumberCase No. 93 of 2014
CounselFor Appellant: Abir Roy, T. Sundar Ramanathan, Advocates and Rajeev Aggarwal
JudgesAshok Chawla, Chairperson, S.L. Bunker, Sudhir Mital, Augustine Peter and U.C. Nahta, Members
IssueCompetition Act, 2002 - Sections 19(1)(a), 26(2), 3, 4, 4(2)(c)
Judgement DateMarch 24, 2015
CourtCompetition Commision of India

Judgment:

Order under Section 26(2) of the Competition Act, 2002

  1. The present information has been filed under section 19(1)(a) of the Competition Act, 2002 ('the Act') by CSC Forum ('the Informant') against CSC e-governance Services India Ltd. ('the Opposite Party/SPV') alleging inter alia contravention of the provisions of sections 3 and 4 of the Act.

  2. The Informant appears to be aggrieved by the alleged anti-competitive conduct of the Opposite Party/SPV floated by Ministry of Communication & Information Technology for building a common identity for the Common Service Centre ('CSC') scheme - which is one of the 27 mission mode projects designed to be implemented on a public private partnership ('PPP') model. This model envisages a three tiered structure viz., CSC operator/Village Level Entrepreneur ('VLE'), Service Centre Agencies ('SCAs') and State Designated Agency ('SDA').

  3. The Informant avers that under the Request for Proposal ('RFP') and the subsequent Master Services Agreement ('MSA') entered into by SCAs with SDA and the State Governments, the SPV was envisaged to facilitate the working of SCAs and VLE with the duty to monitor the CSC scheme and to create a stable and vibrant working atmosphere in SDA/SCAs/VLE.

  4. However, it is alleged by the Informant that the SPV, being the monitor of the scheme, is abusing its dominant position by undertaking the following activities:

    a) Creation of an independent portal by the SPV for the purpose of delivering G2C and B2C services and not integrating the portal with that of the SCAs and asking the VLE directly to register on its portal;

    b) Entering into agreements with the vendors for providing B2C services and suo moto deciding on the commercials;

    c) Unilaterally deciding the revenue split between SPV, SCAs and the VLE without even discussing the same with the SCA; and

    d) Directly getting in touch with the VLE for delivery of services to the rural citizens bypassing the SCAs.

  5. It is also averred that such conduct is being engaged in by the SPV without taking into account the operating costs of SCAs and it is stated that the SCAs are being pushed down the value chain making the whole scheme unviable. Further, it is alleged that the SPV is abusing the mandate given to it under the CSC scheme and projecting itself as in charge of setting up the CSC network.

  6. The matter was considered by the Commission in its ordinary meeting held on 14.01.2015. During the hearing, the counsel...

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