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In an Order passed at the threshold stage, the CCI dismissed a case of abuse of dominant position against the Short Neutral Section Assemblies (‘SNSA’) manufacturer, Arthur Flury.
SNSA are critical safety components used in railway traction systems. The complainant had alleged that, due to Government-imposed restrictions on the public procurement of SNSA from global (non-Indian) manufacturers, Arthur Flury was the only manufacturer and supplier of SNSA in India that was eligible to bid in tenders for the Indian Railways in 2023-24. The CCI agreed with the complainant’s submissions on market delineation and dominance, but dismissed allegations of exploitative and discriminatory prices. The CCI was persuaded that there were objective reasons which explained Arthur Flury’s pricing (including external factors such as inflation, quantity of the order, currency fluctuations, etc.).
The CCI also recognised that Arthur Flury’s position as the sole eligible supplier was not the result of its own conduct, but a by-product of the regulatory framework set by state authorities. Within a period of two years, a new eligible manufacturer entered the market, and Arthur Flury’s prices in response to the increase in competition fell.
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