COMPETITION LAW
Supreme Court Sets Aside NCLAT Order Upholding CCI's ₹202 Crore Penalty On Amazon In Future Coupons Deal
The Supreme Court on Wednesday allowed Amazon's appeal, setting aside the CCI's ₹202 crore penalty and suspension of approval for its 2019 Future Coupons investment, along with the NCLAT order that upheld it.A Bench comprising Justices Vikram Nath and Sandeep Mehta ultimately held that both the CCI's December 17, 2021 order and the June 13, 2022 judgment of the NCLAT could not be sustained. “In view of the findings recorded above, the appeal is allowed. The impugned judgment dated 13 June 2022...
CCI Approves Tata International Singapore-Mercuria Joint Venture For Global Commodities Trading
The Competition Commission of India on Tuesday approved the proposed formation of a joint venture company between Mercuria Energy Netherlands B.V., a subsidiary of Mercuria Energy Group Limited, and Tata International Singapore (Pte) Ltd (TISPL).According to a press release issued by the Commission, the transaction involves Mercuria and TISPL entering into an agreement to establish a joint venture company in the Dubai International Financial Centre, United Arab Emirates, along with certain...
Supreme Court Dismisses Appeal Against NCLAT Order Clearing NSE In Co-Location Abuse Of Dominance Case
The Supreme Court on Tuesday upheld the NCLAT's order clearing the National Stock Exchange in the co-location access abuse of dominance case, refusing to interfere with the tribunal's finding that no prima facie case of anti-competitive conduct was made out. The NCLAT had held that mere dominance does not amount to abuse and found no material showing denial of market access or appreciable harm to competition.“Merely being a dominant player is not bad in itself, unless it has resulted into...
CCI Closes Complaint Against Rapido Over Alleged Use Of Private Vehicles For Bike Taxi Services
Observing that allegations relating to vehicle permits, tax remittances, and other regulatory compliance issues fell outside the scope of competition law, the Competition Commission of India has rejected a complaint filed against Rapido over claims that the ride-hailing platform distorted competition through its bike-taxi and pricing practices. A coram of Chairperson Ravneet Kaur and Members Anil Agrawal, Sweta Kakkad, and Deepak Anurag passed the order on information filed by Deep Chandra...
NCLAT Dismisses Liquor Bodies' Challenge To Kerala's Jawan Rum Preference, Finds No Competition Harm
The National Company Law Appellate Tribunal (NCLAT) at Delhi has dismissed an appeal by liquor industry bodies challenging Kerala's preferential treatment to state-owned Jawan Rum, holding that they failed to show the policy distorted competition or harmed consumer choice. A bench of Judicial Member Justice Mohd Faiz Alam Khan and Technical Member Naresh Salecha held, “The Appellants had not been able to demonstrate as to how competition, in general, with the existence of so many brands in the...
CCI Closes Abuse Of Dominance Cases Against 12 Private Delhi NCR Hospitals Over Excessive Pricing Allegations
The Competition Commission of India (CCI) has closed abuse of dominance proceedings against 12 private super-specialty hospitals in Delhi NCR, including Max Super Speciality Hospital, Fortis, Indraprastha Apollo, and St. Stephen's. It rejected the Director General's findings that the hospitals abused their dominance by allegedly charging excessive prices for medicines, consumables, medical devices, tests, and room rents. In a set of materially similar orders, a bench comprising CCI Chairperson...
CCI Approves Chinese WOK Operator's Proposed Acquisition Of Stake In Burger King India Franchisee
The Competition Commission of India has approved the proposed acquisition of a certain stake in Burger King India franchisee Restaurant Brands Asia Limited by Chinese WOK operator Lenexis Foodworks and other acquirers. The proposed transaction will be carried out through equity subscriptions, warrant subscriptions, equity purchases, and an open offer. The other acquirers are Aayush Agrawal Trust, Inspira Foodworks Private Limited, Aayush Madhusudan Agrawal, and Inspira Agro Trading LLC. ...
CCI Approves Thriveni Earthmovers' Stake Purchase In Lloyds Engineering, Three-Entity Merger
The Competition Commission of India has approved a proposed combination involving acquisition of a 7.14% stake in Lloyds Engineering Works Limited (LEWL) by Thriveni Earthmovers Private Limited (TEMPL) and merger of three entities into LEWL.The proposed transaction includes acquisition of 7.14% shareholding in LEWL by TEMPL through a block deal executed on the Bombay Stock Exchange.The combination also envisages merger by absorption of Lloyds Infrastructure & Construction Limited (LICL),...
CCI Approves Adani Power's Proposed Acquisition Of GVK Energy Under IBC Resolution Process
The Competition Commission of India has approved Adani Power Limited's proposed acquisition of 100% share capital and control of GVK Energy Limited. The transaction arises from the corporate insolvency resolution process initiated against GVK Energy under the Insolvency and Bankruptcy Code, 2016. Listed on the BSE and NSE, Adani Power is a private thermal power producer. Its plants are spread across Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil...
CCI Orders Probe Into Pernod Ricard, Others Over Alleged Anti-Competitive Conduct In Delhi Liquor Market
The Competition Commission of India (CCI) recently ordered an investigation into alleged anti-competitive arrangements between Pernod Ricard, the multinational spirits and wines company behind brands such as Royal Stag, Blenders Pride, and Chivas Regal, and a set of wholesalers and retailers in Delhi's liquor market under the now-scrapped Delhi Excise Policy, 2021-22. “In view of the foregoing, the Commission is of the prima facie view that the restrictive conduct by Pernod Ricard with its...
NCLAT Delhi Quashes ₹301.61 Crore Penalty On Grasim, Says CCI Must Hear Party Before Deviating From DG Report
On 5 May, the New Delhi National Company Law Appellate Tribunal (NCLAT) held that the Competition Commission of India (CCI) must give a party an opportunity to respond if it intends to depart from the Director General's (DG) findings before issuing adverse directions. A Bench of Judicial Member Yogesh Khanna and Technical Member Ajai Das Mehrotra set aside the CCI's order dated 16 March 2020, which had imposed a penalty of Rs 301.61 crore on Grasim Industries Ltd in the alleged abuse of...