Enforcement
CCI dismisses complaint against National Internet Exchange of India for alleged abuse of dominant position
CCI received a complaint against the National Internet Exchange of India ("NIXI")1 for indulging in alleged abuse of dominant position, in contravention of Section 4 of the Competition Act.
Extreme Infocom Private Limited ("Complainant"), inter alia engaged in the business of providing internet exchange services to customers and provides Internet Exchange Points ("IXP") connecting internet service providers and local and international content providers/content delivery networks (known as peering). For the provision of such service and hardware, entities providing IXPs are usually paid a fee called 'port fee'.
The Complainant inter-alia alleged that NIXI, being a dominant enterprise, has indulged in predatory pricing i.e., it offered internet exchange services to its customers for free, or, below cost which resulted in denial of market access to the Complainant.
Relying on the Bharti Airtel case2, NIXI argued that CCI lacks jurisdiction in the present matter since any complaint regarding NIXI's alleged conduct has to be adjudicated by the sectoral regulator i.e. TRAI/DoT.
On the issue of jurisdiction, CCI rejected the Complainant's submissions and noted that the ruling in the Bharti Airtel case was basis the specific facts of the case and a universal application of the law laid down in the said case would deprive CCI of its jurisdiction in every matter where there is an overlap with a sectoral regulator which is not the intended purpose.
On merits, CCI noted that NIXI is not dominant in the market for the provision of internet exchange services in India due to the presence of several significant players in the said market. In fact, in terms of volume of traffic and number of connected networks, the Complainant has significant presence vis-à-vis NIXI and despite NIXI being the oldest IXP, the Complainant has been able to increase its relative presence in the relevant market which suggests that the relevant market remains contestable. Absent dominance, CCI noted that no case of Section 4 of the Competition Act is made out against NIXI.
Accordingly, CCI dismissed the case.
(Source: CCI order dated August 20, 2024)
CCI dismisses complaint against Procter & Gamble Hygiene and Health Care Limited for alleged abuse of dominant position
CCI received a complaint against Procter & Gamble Hygiene and Health Care Limited ("P&G")3 and Procter & Gamble Company, USA ("P&G USA") for indulging in alleged abuse of dominant position, in contravention of Section 4 of the Competition Act.
Mr. Rajiv Rai Sachdev ("Complainant") claimed that he invented a disruptive green technology called 'Enliven' , promoting it with all kinds of garments and textile products manufacturers.
The Complainant inter alia alleged that: (a) P&G collected information from the Complainant about Enliven and its application to P&G's sanitary pads under the 'PG Connect + Develop program' and utilised the same to develop and launch a product without collaborating with the Complainant or seeking his permission; and (b) P&G denied market access to the Complainant as he lost the first mover's advantage towards bringing Enliven into the market irrespective of being its innovator, supported by duly registered patents in his name.
CCI noted that while P&G holds a sizable market share in India's disposable sanitary pad market, it does not qualify as a dominant player, with Johnson & Johnson's Stayfree brand serving as a close competitor with comparable resources. Absent dominance, CCI noted that no case of Section 4 of the Competition Act is made out against P&G.
On merits, CCI noted that: (a) there is no evidence to suggest that P&G's product was based on the information and idea of the Complainant; (b) P&G had not obstructed the Complainant from launching a similar product based on his own ideas; and (c) there was no such product in the making by the Complainant that was awaiting a launch.
Accordingly, CCI dismissed the case.
(Source: CCI order dated August 9, 2024)
Footnotes
1. It is a non-profit organization aimed at provision of better internet services across India.
2. CCI v. Bharati Airtel Limited, (2019) 2 SCC 521
3. It is the Indian subsidiary of P&G USA, a consumer goods corporation, dealing in personal health/ consumer health and personal care and hygiene products.
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