CCI orders investigation against M/s ACI for alleged violation of Competition Act.

Competition Commission of India (CCI) has ordered investigation against M/s ACI India, M/s ACI Worldwide and M/s ACI Asia Pvt. Limited (Respondents) on the allegations of contravention of provisions of Competition Act.

CCI had issued the order under Section 26(1) of the Competition Act, 2002 on the basis of information filed by M/s Financial Software and System Private Limited (Informant). The informant has alleged that ACI has abused their dominance by imposing unfair conditions in the purchase or sale of goods or services through exclusive supply arrangements, limiting and restricting the technical or scientific development in the market etc.

After initial examination, CCI has observed that Prima facie the conduct of the respondents amounts to ‘tie-in arrangement’ and ‘refusal to deal’. Such agreements are also likely to have appreciable adverse effect on competition looking at the market share and market size of the enterprise in question.

The Director General, CCI shall complete the investigation within a period of 60 days from the date of the order. CCI has also made clear that nothing stated in this order shall tantamount to an expression of final opinion on the merits of the case and the DG shall conduct the investigation without being influenced by any observations made in the present order.

The detailed order of CCI can be seen at www.cci.gov.in.

Abuse of dominance triggers CCI probe into exclusive supply tie ins and refusal to deal, alleging adverse competition effects. CCI ordered investigation into ACI entities on information alleging abuse of dominance via exclusive supply conditions, a tie-in arrangement and refusal to deal, which prima facie may have an appreciable adverse effect on competition; the Director General is directed to conduct an independent investigation within the prescribed period and the order is not a final determination on merits.