28 July 2014

Competition law – Relevant market and locus standi for moving CCI

Competition Appellate Tribunal (COMPAT) on 4-7-2014 has held that there cannot be a restrictive ‘relevant market’ on the basis of a singular feature in the impugned goods (car in this case). The decision of the Competition Commission of India (CCI) which found the relevant market to be market for luxury cars sold in India, was hence upheld by the COMPAT rejecting the plea of the informant to consider market for cars which run on the basis of ‘run flat tyre technology’ only. The informant was aggrieved because the car was not provided with the usual spare tyre by the manufacturer on the ground that it can run on flat tyre for some distance. CCI’s Order on absence of dominance of particular brand of luxury cars was also upheld by the Tribunal after taking note of data on sales.

It was also held here in the dispute pertaining to  International Cylinder Pvt. Ltd. v. Competition Commission of India that legal machinery under the CCI cannot be moved by a person who has no concern whatsoever with the subject. It was observed in this regard that the informant, who is a director in the company which purchased the car, has no locus standi, being not concerned in any manner with the purchase or ownership of the car, and hence the CCI should have rejected the information on the basis of lack of locus standi.


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