CCI by its order dated November 17, 2015 ordered dismissed
allegations of violation of Section 4 of the Act, in an information
filed by AnjaniSut Fuel (Informant) against Reliance Industries
In order to obtain the dealership from RIL for operating a
retail petroleum outlet in Jhumri-Telaiya, Koderma, Jharkhand, the
Informant constructed a retail outlet in accordance with the
designs and other specifications provided by RIL and executed a
dealership agreement in the year 2005. Later the retail outlet was
suspended with a new dealership support scheme.
Aggrieved with the suspension of operation of the retail outlet
by RIL, the Informant has alleged abuse of dominant position by RIL
in violation of the provisions of Section 4 of the Act. The
Informant has alleged that RIL, taking advantage of its dominant
position in the petroleum refining and marketing sector, has
distorted competition in the domestic market by exporting refined
petroleum at international prices (which is higher than the prices
prevalent in the domestic market).
The commission observed that the relevant market in the present
case is the market for 'retail sale of petroleum products in
India'. It was further observed that though RIL is the largest
player in the private sector but holds only 27.9 % market share in
terms of installed refining capacity in India, and hence RIL is not
a dominant enterprise in the relevant market. Thus, there exists no
case against RIL for violation of Section 4 of the Act.
(Source: CCI Order dated November 17, 2015. For full text
see CCI website)
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