Recent key developments in the competition arena

The Competition Commission of India (CCI) has been in the spotlight recently. Four of the reasons are outlined below.

First dawn raid conducted

The CCI conducted its first dawn raid, at the Delhi office of JCB, a major construction equipment manufacturer, in connection with an investigation of allegations that JCB is abusing its dominant position in the market.

Media reports said the decision to exercise the CCI Director General’s power to conduct the raid was taken because JCB wasn’t complying with requests of the CCI. Documents and data were seized in the raid.

In March this year, based on information filed by Bulls Machine Private Limited (a small-scale manufacturer of low-cost construction equipment), the CCI held that prima facie, JCB was abusing its dominance by denying market access through an injunction obtained by JCB from Delhi High Court on the grounds that Bulls Machine was infringing designs of JCB. The CCI in its order observed that “predation through abuse of judicial processes” presents an increasing threat to competition. JCB had sought a stay on the CCI order from Delhi High Court. In April the high court held that the CCI could continue its investigation but would not be entitled to pass a final order pending a final order of the court.

Amit Tambe is a partner at Trilegal and Kunal Chandra is a counsel. Trilegal is a full-service law firm with offices in Delhi, Mumbai, Bangalore and Hyderabad.