25 Jan 2025

Summary-of-Key-Case-Laws-and-Evolving-Jurisprudence-in-Indian-Competition-Law

Summary-of-Key-Case-Laws-and-Evolving-Jurisprudence-in-Indian-Competition-Law

Introduction

The Competition Commission of India (CCI) plays a pivotal role in regulating and fostering competition in India. However, the evolving landscape of Indian competition law has seen significant developments through judicial pronouncements by the Supreme Court of India, High Courts, and the National Company Law Appellate Tribunal (NCLAT). These decisions have shaped the jurisdiction, functioning, and interpretation of key provisions under the Competition Act, 2002. Below is a detailed analysis of important case laws, structured with facts, issues, and judgments for clarity.


1. Coal India Ltd. & Anr. v. Competition Commission of India & Another (Supreme Court – June 2023)

Facts: A decade-long dispute arose regarding the applicability of the Competition Act to Coal India Ltd (CIL), a state-owned monopoly.

Issue: Whether the Competition Act, 2002, applies to government companies and statutory monopolies.

Judgment: The Supreme Court ruled that the Competition Act applies to CIL and similar public sector undertakings, clarifying that even entities established to further the "common good" under the Constitution must comply with competition law. The CCI’s jurisdiction in abuse of dominance cases involving such monopolies was upheld.


2. Telefonaktiebolaget LM Ericsson (PUBL) v. Competition Commission of India & Another(Delhi High Court – July 2023)

Facts: Ericsson’s licensing terms for Standard Essential Patents (SEPs) were alleged to be anticompetitive.

Issue: Whether disputes over patent licensing fall under the Competition Act or the Patents Act, 1970.

Judgment: The Delhi High Court held that the Patents Act is a self-contained code and prevails over the Competition Act for patent-related disputes. This bars the CCI from examining such matters, which must instead be addressed by the Controller of Patents. The decision is currently under appeal.


3. Institute of Chartered Accountants of India v. Competition Commission of India & Others(Delhi High Court – June 2023)

Facts: The CCI sought to examine ICAI’s decisions, which allegedly affected trade.

Issue: Whether the CCI has jurisdiction over decisions made by statutory regulators.

Judgment: The court ruled that the CCI cannot review decisions of statutory bodies exercising regulatory functions unrelated to trade or commerce. This limits the CCI’s scope in scrutinizing regulatory actions.


4. Google India Pvt. Ltd v. Matrimony.com Ltd (Madras High Court – August 2023)

Facts: Plaintiffs challenged Google’s terms and conditions under civil jurisdiction.

Issue: Whether civil courts can entertain abuse of dominance claims under the Competition Act.

Judgment: The court reaffirmed that Section 61 of the Competition Act ousts civil courts’ jurisdiction in such matters, emphasizing the CCI’s authority.


5. Alliance of Digital India Foundation v. Competition Commission of India & Others (Delhi High Court – April 2023)

Facts: The CCI faced quorum issues that delayed adjudication.

Issue: Can the CCI function without a full quorum?

Judgment: The Delhi High Court allowed the CCI to continue adjudicating cases despite vacancies, invoking the doctrine of necessity to ensure continuity.


6. Ultratech Cement Ltd. v. Competition Commission of India & Another (Delhi High Court – December 2023)

Facts: A party sought to join ongoing CCI proceedings.

Issue: Can the CCI implead third parties post-investigation?

Judgment: The court upheld the CCI’s power to implead parties with "substantial interest" and "public interest" at any stage, ensuring more informed decisions.


7. Google LLC & Anr v. Competition Commission of India & Others (NCLAT – March 2023)

Facts: Google challenged behavioral remedies imposed by the CCI.

Issue: Is an "effects analysis" mandatory for abuse of dominance cases?

Judgment: The NCLAT mandated that the CCI conduct an "effects analysis" to prove anticompetitive harm before imposing remedies. This nuanced approach aligns with global standards.


8. Consumer Unity & Trust Society v. Competition Commission of India & Others (NCLAT – August 2023)

Facts: A transaction exempt from merger notification was challenged.

Issue: Can the CCI investigate such transactions under anticompetitive provisions?

Judgment: The NCLAT clarified that exempt transactions cannot be reviewed ex-ante but may face scrutiny ex-post if anticompetitive conduct is evidenced.


9. U.P. Glass Manufacturers Syndicate v. Competition Commission of India & Others (NCLAT – July 2023)

Facts: Third parties sought to comment on a pending merger.

Issue: Do third parties have a right to participate in merger proceedings?

Judgment: The NCLAT held that third parties can only comment if explicitly invited by the CCI.


10. Balrampur Chini Mills Limited v. Competition Commission of India & Others (NCLAT – October 2023)

Facts: The CCI’s final order was challenged for procedural lapses.

Issue: Must the same members hearing arguments decide the case?

Judgment: The NCLAT set aside the order, emphasizing the principle of "one who hears must decide" and criticized delays in decision-making.


11. Excel Crop Care Limited v. Competition Commission of India (Supreme Court)

Facts: The CCI imposed a penalty on Excel for anticompetitive agreements.

Issue: What is the appropriate basis for calculating penalties under the Competition Act?

Judgment: The Supreme Court ruled that penalties should be based on "relevant turnover" linked to the infringing product or service, rather than the total turnover, ensuring proportionality.


12. Competition Commission of India v. Steel Authority of India Ltd. (Supreme Court)

Facts: The Steel Authority challenged a CCI order imposing interim measures.

Issue: What principles guide interim relief under the Competition Act?

Judgment: The Supreme Court affirmed the CCI’s discretion to issue interim orders but emphasized the need for a strong prima facie case and balance of convenience.


These judicial pronouncements highlight critical facets of competition law, offering clarity on procedural and substantive issues. They underscore the balance between empowering the CCI and safeguarding the interests of regulated entities and the public.

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Article Compiled by:-

~Mayank Garg

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(LegalMantra.net Team)