COMPAT

Subscribe to COMPAT via RSS

Rajasthan Cylinders and Containers Ltd v Union of India & Anr - Competition Law 

Can enterprises be in violation of the Competition Act, 2002 (Competition Act) when prevailing market conditions are themselves not conducive to a competitive market?

This is an interesting question relating to enforcement of the Competition Act, which was dealt with by the Hon’ble Supreme Court of India (Supreme Court) in the case of Rajasthan Cylinders and Containers Ltd v Union of India & Anr[1].

The case arose from a tender floated by Indian Oil Corporation Ltd (IOCL) for the purchase of LPG cylinders. Curiously, it was not IOCL (the buyer) that had approached the Competition Commission of India (CCI) alleging contravention of the Competition Act. In fact, it was an LPG cylinder manufacturer that approached the CCI challenging the tender conditions imposed by IOCL. However, while the case against IOCL was closed, during the investigation of the aforesaid tender, the Director General (DG) noticed a similar pattern in a bid submission by LPG cylinder manufacturers. This chain of events led the CCI to initiate an inquiry, on its own motion, into the alleged cartelisation and bid-rigging by LPG cylinder manufacturers.
Continue Reading Supreme Court Builds on Excel Crop Care Judgment to Examine Oligopsony in a Cartel Matter

In an interesting development, the Supreme Court of India (Supreme Court) has overturned the Competition Appellate Tribunal’s (COMPAT) order and confirmed the Competition Commission of India’s (CCI) order confirming abuse of dominance by multi-system operators (MSOs).

The Supreme Court not only interpreted the provisions of section 4 of the Competition Act, 2002 (Competition Act) and differed with COMPAT’s understanding; but also delivered a judgment in a sector that is regulated by the Telecom Regulatory Authority of India (TRAI). The judgment, though not directly dealing with the issue, affirms the exclusive jurisdiction of the CCI to deal with anti-competitive conduct even in regulated sectors with special sectoral regulators. Most interestingly, in another case before the Supreme Court, the TRAI is contesting that it is the sole regulator in the telecom sector including competition law related issues and CCI has no jurisdiction.

Additionally, the judgment also advances the penalty jurisprudence in competition law cases by setting aside CCI’s imposition of penalties, due to certain mitigating factors despite upholding its conclusion of abuse of dominance.Continue Reading Supreme Court Confirms Abuse of Dominance by Multi System Operators

As soon as the details were disclosed, the Finance Bill, 2017 raised eye-brows[1] . Some noted that:

  • To minimise the number of tribunals, the Finance Bill, 2017 sought to merge eight tribunals with other tribunals and amended provisions relating to the structuring and re-organization of such tribunals.
  • The above measures were sought to be taken through a money bill, which is only supposed to contain provisions for imposition of taxes and withdrawal of money from the State Treasury.

Continue Reading Spanner in the Works? Judicial Challenge to the Finance Act, 2017

This article was first published in The Practical Lawyer

Recently, the Government of India decided to merge the Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT). While the debate is still ongoing as to the benefits and drawbacks of this decision, it is interesting to see the approach of the COMPAT in a few cases which came before it in the last few months. In the recent past, the Competition Commission of India (CCI) has often found itself at the receiving end of the COMPAT, in more ways than one. Several of the CCI’s orders have been set aside, primarily on grounds of failure to adhere to the principles of natural justice. However, following a string of recent orders of the COMPAT, it now appears that the COMPAT has been steadily slipping into the CCI’s adjudicatory shoes!

In a recent decision of the CCI involving alleged abuse of dominance by Gas Authority of India Limited[i], the COMPAT disapproved of the CCI for being overly diligent while passing a prima facie order. The COMPAT noted that at the initial stage of forming an opinion on whether there exists a prima facie case, the CCI is required to merely conduct a preliminary analysis based on averments made in the information. It further noted that the CCI cannot conduct a detailed examination of the allegations, evaluate evidence and record its findings on the merits of the issue given that such exercise can be undertaken only after receiving the investigation report from the Director General (DG). Accordingly, the COMPAT reversed the CCI’s finding of no prima facie violation under the Competition Act, 2002 (Act) and simultaneously directed the DG to investigate the matter.Continue Reading COMPAT v. CCI: A Power Tussle