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

The enforcement of any new law can throw many issues. These become especially prominent in the case of a law that is brought into force in phases – i.e. different provisions are made operational at different times.

The Competition Act, 2002 (Competition Act) is one such legislation. Though the statute was passed in 2003, its phase-wise notification extended up till 2011. More importantly, the sections/ provisions relating to anti-competitive agreements were notified[1] to come into force from 20 May 2009. The application of a provision/ section after an event is one such prickly issue.

The Supreme Court of India (SC) has examined the issue in the context of the Competition Act in the recent decision of Excel Crop Care Limited v Competition Commission of India & Anr[2].

Continue Reading An Antitrust Time Machine: Application of Competition Act to Pre-Enactment Conduct

The Competition Commission of India’s (CCI) prima facie order under section 26(1) of the Competition Act, 2002 (Competition Act) allows the Director General (DG) to investigate alleged violations of the Competition Act. Parties under investigation, however, often allege that the DG investigations go beyond the scope of the order passed by the CCI.

Various High Courts are considering issues of this nature under their writ jurisdiction. However, the recent Hon’ble Supreme Court of India’s (SC) decision in Excel Crop Care Limited v. Competition Commission of India & Another (Excel Case)[1] may provide an important perspective to the existing debate.

Continue Reading How far is too far? The Supreme Court’s View on the Scope of Director General Investigations