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        Law of Competition

        2020 (11) TMI 625 - AT - Law of Competition

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        Appeal Denied: Tribunal Upholds CCI's Decision on Alleged Unfair Pricing in Rolling Stock Market. The appeal filed under Section 53 B of the Competition Act, 2002, was dismissed by the Tribunal, upholding the Competition Commission of India's (CCI) ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                              Appeal Denied: Tribunal Upholds CCI's Decision on Alleged Unfair Pricing in Rolling Stock Market.

                              The appeal filed under Section 53 B of the Competition Act, 2002, was dismissed by the Tribunal, upholding the Competition Commission of India's (CCI) decision. The Appellant alleged abuse of dominant position under Section 4 of the Act against a Respondent for unfair pricing of rolling stock mounted GPR for ballast inspection. However, the Appellant failed to define the relevant market or establish the Respondent's dominance. The CCI noted the presence of multiple global competitors and found insufficient evidence of dominance or abuse. Consequently, the Tribunal found no grounds to challenge the CCI's order and dismissed the appeal.




                              Issues:
                              1. Appeal filed under Section 53 B of the Competition Act, 2002 against the Order of Competition Commission of India.
                              2. Allegation of abuse of dominant position under Section 4 of the Act.
                              3. Failure to define or suggest relevant market by the Appellant.
                              4. CCI's decision not to delineate the relevant market due to lack of data.
                              5. Presence of multiple global players in the market for rolling stock mounted GPR for Ballast Inspection in India.

                              Analysis:
                              1. The appeal was filed under Section 53 B of the Competition Act, 2002 against the Order of the Competition Commission of India, which was passed under Section 26 (2) of the Competition Act, 2002 in Case No. 14 of 2020. The Appellant, a Public Limited Company, approached Respondent No. 2, a Pvt. Ltd. Company, for the supply of rolling stock mounted GPR for ballast inspection to compete for a tender released by the Ministry of Railways. The Appellant claimed that Respondent No. 2 quoted a price significantly higher than the market rate, leading to allegations of unfair pricing practices.

                              2. The Competition Commission of India (CCI) considered the information submitted by the Appellant but found no contravention of the Act. The Appellant contended that CCI erred in not conducting an investigation through the Director General, leading to the filing of the present appeal.

                              3. The Appellant failed to define or suggest a relevant market in the case. The CCI, in its order, noted the absence of data to delineate the relevant market, especially considering the presence of multiple global players in the market for similar products.

                              4. CCI decided not to delineate the relevant market due to insufficient data and the presence of several major global players in the market. The Commission found that the Opposite Party (Respondent No. 2) did not appear to hold a dominant market position based on the market structure and the number of competitors.

                              5. The CCI's order highlighted the presence of at least four other major global players in the market for rolling stock mounted GPR for Ballast Inspection in India, besides the Opposite Party. The Appellant's claim of abuse of dominant position under Section 4 of the Act required the delineation of the relevant market, establishing dominance, and proving a prima facie case of abuse, which the CCI found lacking in the absence of sufficient evidence.

                              6. The Appellant's attempt to shift the burden of defining the relevant market to CCI was dismissed, as the order indicated the availability of other market players and the Appellant's failure to approach them for comparison. The Tribunal found no grounds to interfere with the CCI's decision and dismissed the appeal without admission.
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