Abuse of Dominance

Given the multifaceted economic and legal considerations, fair and effective enforcement of competition law is a complex task. It is rendered all the more daunting with the added requirement for the optimal level of competition law enforcement.

Optimal enforcement is arguably more important in competition law proceedings than in other areas of law enforcement because inadvertent under- and over-enforcement may actually end up harming competition itself. For example, if a competition authority attempts to over-enforce, it can actually make conduct illegal that was otherwise legal and, thus, prevent an enterprise from competing on merits. The result would be counter-productive to the objectives of competition law (by harming level of competition in the markets).

Given this debate, the story of competition law has been the story of competition between tests and concepts that are either presumption or form based (thus, simpler and providing legal certainty) and tests that are effects based – i.e. using economic/ quantitative techniques and are, thus, more accurate (and more conducive to the idea of optimal enforcement).

Recently, although the debate in this regard has surrounded the applicability of the effects-based test to prohibite abuse of dominance, companies need to be able to formulate policies that re-assure them of their legal certainty – stakeholders, therefore, await fast-track consensus.Continue Reading Abuse of Dominance: Effect over Form?

Clear skies emerge as competition authorities across jurisdictions become more sure-footed in dealing with the ever growing (new) digital economy.

The Competition Commission of India’s (CCI) confidence in dealing with apps and technologies is reflected in its relevant market[1] determination in cases concerning instant messaging apps.

On 1 June, 2017, the CCI passed an order[2] under Section 26(2) of the Competition Act, 2002 (Competition Act), holding that the case did not warrant an inquiry into alleged abuse of dominant position by WhatsApp Inc (WhatsApp).Continue Reading Where Do They Belong? Relevant Market Determination for Instant Communication Apps

On 31 August 2016, the Competition Commission of India (CCI) dismissed an information under Section 26(2) filed against M/s ANI Technologies Private Limited (Ola Cabs) in the case of Mr. Vilakshan Kr. Yadav and Ors v. M/s ANI Technologies Private Limited[1] alleging abuse of dominance, in contravention of Section 4 of the Competition Act, 2002 (Competition Act).

The information was filed with the CCI by a group of auto rickshaw and taxi drivers plying their trade in Delhi and the National Capital Region (NCR). The informants argued that the relevant product market should be defined as “paratransit services” comprising auto rickshaws, black-yellow taxis and city taxis given that all of these are used for point-to-point travel by passengers and, thus, compete within the same space. Further, according to the informants, the drivers for all these modes of transportation are drawn from the same pool. The informants asserted the relevant geographical market to be the NCR comprising Delhi and certain districts of three states namely, Haryana, Uttar Pradesh and Rajasthan. This was based on an agreement that was signed by the respective governments of these four states to issue permits for auto rickshaws and taxis providing unrestricted movement within the NCR.
Continue Reading “Smooth” Driving For Ola – CCI Closes Investigation Under 26(2)