QUARTERLY UPDATES ON THE DEVELOPMENTS IN THE COMPETITION LAW DOMAIN
- Investigations initiated by CCI under Section 26 (1) of the Act
- Investigations closed by the CCI under Section 26 (2) of the Act
- Investigations disposed of by CCI under Section 26 (6) of the Act
- Decisions by Competition Appellate Tribunal
- Combinations filed with CCI during April 2016 - June 2016
- International updates
- Publications and Articles
I. Investigations initiated under Section 26 (1) of the Act
1. CCI initiates investigation against Monsanto Biotech
Kaveri Seed Company Limited, Ajeet Seeds Private Limited & Ankur Seeds Private Limited Vs. Mahyco Monsanto Biotech (India) Limited & Others
CCI, pursuant to its power under Section 26 (1) of Act has initiated an investigation against Mahyco Monsanto Biotech (India) Limited and its sister concerns for alleged contraventions of Sections 3 and 4 of the Act. Informants alleged that OPs had abused their dominant position by imposing unfair and discriminatory conditions in the Sub-License Agreements through which Bt technology is sub-licensed to the seed manufacturing companies in India. It was also alleged that the OPs charged unfair trait value, restricted scientific development relating to Bt cotton technology as well as Bt cotton seeds and denied market access by leveraging their dominant position to expand their practice in Bt cotton seeds market. The Informants further alleged that OPs entered into exclusive supply agreement and 'refused to deal' arrangements with Indian seed manufacturers and reserved the right to fix price of seeds in certain circumstances. CCI has directed the DG to investigate the matter.
2. CCI initiates investigation against ABB's listed Indian subsidiary engaged in electrical equipment manufacturing
InPhase Power Technologies Private Limited Vs. ABB India Limited
Informant deals in designing, developing and manufacturing of Power Quality and Power Conversion products indigenously in India and supplies them to industries like railways, automobiles, steel, cement etc. OP is a listed company and a subsidiary of Swiss based ABB Group engaged in the business of manufacturing of electrical equipment like switch gears, drives, automation etc. The Informant has developed a Static Synchronous Compensator which they claim to be more advanced than the OP's in terms of technology and features. Also, the Informant has applied for a patent for its said product.
The Informant has alleged that the OP has abused its dominant position by instituting civil and criminal litigation with malafide intention to stop the Informant from doing business and has obtained an ex-parte ad interim injunction order dated July 25, 2015 which has put the Informant on the verge of bankruptcy. The Informant has provided to the CCI, OP's market dominance of 32% relying upon "Research Report of Ken Research (2015)". It has also been alleged that the OP has threatened to stop supplies to its customers if they deal with the products of the Informant. The Informant has pointed out 23 differences between the products of the OP and the Informant and submitted that there lies no patent violation nor any theft of information. Informant has also filed an appeal before the High Court of Karnataka challenging the order of the City Civil and Sessions Judge, Bengaluru. The Informant has submitted that the OP has distributed some letters and other written material apart from making personal calls to the customers and suppliers stating that the Informant is an illegal and sham company.
CCI has directed the DG to initiate an investigation into the matter.
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