Home Case Index All Cases Indian Laws Indian Laws + Commission Indian Laws - 2018 (11) TMI Commission This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 1932 - COMPETITION COMMISSION OF INDIAMisuse of dominant position - Contravention of the provisions of Section 4 of Competition Act, 2002 - Abuse of dominant position - selling goods below cost price also result in denial of market access to the individual sellers who are not backed by VC funds and investors and thereby such acts also contravene the provisions of Section 4 (2) (c) of the Act - using its dominance in the relevant market by leveraging its position to enter into another market by way of extending discounts and manufacturing products under private labels. HELD THAT:- The relevant product market in this case may be considered as “Services provided by online marketplace platforms” - Further, as per the provisions of the Act, relevant geographic market comprises the area in which conditions of competition are distinctly homogeneous. For online market platforms, the conditions of competition are homogeneous pan India and as such, the relevant geographic market in this case may be taken as ‘India’ - the relevant market in the instant case may be defined as “Services provided by online marketplace platforms for selling goods in India”. Issue of dominance - HELD THAT:- Flipkart India is not dominant in the relevant market of “Services provided by online marketplace platforms for selling goods in India”; therefore, the issue of abuse of dominant position does not arise. The Commission, however, deems it appropriate to take on record the submissions made by Flipkart denying abusive conduct by its entities. In regards to Flipkart India, it has been submitted by Flipkart that the arrangements of Flipkart India with its B2B customers are neither exclusive nor do they impose any restraints on any reseller who chooses to sell their products on the Flipkart platform. Further, Flipkart India does not impose any exclusivity requirements on its B2B customers with respect to either procuring the products from Flipkart India or with respect to reselling these products to any third parties, or selling on/ through the Flipkart marketplace. The option of dealing with Flipkart India is available to any vendor. There is no restriction on any entity desirous of dealing with Flipkart India as a B2B customer. Further, the B2B customers are independent third party vendors with whom Flipkart India has arm’s length arrangement. The Commission is of the opinion that no case of contravention of the provisions of Section 4 of the Act is made out against the Opposite Parties and the Information is ordered to be closed forthwith in terms of the provisions contained in Section 26(2) of the Act. Application disposed off.
|