Competition Synopsis

SYNOPSIS FOR THE SUBJECT
Competition Law
ABUSE OF DOMINANCE: THE INDIAN APPROACH
SUBMITTED BY
Ms. Parul Meena
Semester – IX (2015-026)
B.A.LL.B. (Hons)
Submitted to
Prof., Dr. Anand Raut
ACADEMIC YEAR (2019-20)

INTRODUCTION
India began its journey of transformation from a closed economy to a liberalized market
economy in 1991. India has since 1991, grown tremendously as a market and economic
powerhouse but when competition law was introduced in India in the form of the Competition
Act 2002 there were severe resistance from the Indian industry which claimed that Indian
market had not achieved the scale ad dynamics which merit a modern competitive law regime
being enforced – although, the number of complaints and investigations under the Indian
competition regime since 2009 has provided the contrary.
The Act finally came into effect in a phased manner, with significant amendments in 2007. The
provisions relating to anti-competitive agreements and abuse of dominance came into effect in
May 2009 and the provisions in relation to merger control came into effect in June 2011.
The Competition Commission of India (CCI) is the regulatory body established under the Act
to administer the provisions of the Act and the Competition Appellate Tribunal in the appellate
body. The substantive test and the benchmark for analysis under the Act is to prohibit practices
which have an appreciable adverse effect on competition in India.
RESEARCH METHODOLOGY
STATEMENT OF PROBLEM
In order to assess the concept of Abuse of Dominance and the penalties levied thereby, the
approach of Competition Commission of India and its evolution with the mature jurisdictions.
AIMS AND OBJECTIVES
The primary aim of this research work is to highlight the concept of Abuse of Dominance under
Competition Act, 2002 in India. Research paper will first look to the framework of Abuse of
Dominance cases in India and the way Competition Commission of India and COMPAT are
dealing with the situation.
OBJECTIVES
1. To study the meaning of “Abuse of Dominance” as understood across different

jurisdictions and to arrive at a definition for the purpose of this research work.
2. To analyse the concept of ‘Relative turnover’ and response of Competition Commission
of India and COMPAT with comparison to other mature Jurisdictions
HYPOTHESIS
It is hypothesized by the researcher that the existing concept for Abuse of Dominance under
Competition Law in India is capable to avoid such problems and the penalties levied are
justifiable. Also that Competition Commission of India has already evolved into a mature
framework.
RESEARCH QUESTIONS
1. How is Abuse of Dominance determined and understood in light of the provisions under
the Competition Act, 2002?
2. What is the legal framework pertaining to determination of Abuse of Dominance in
India and the same under the jurisdiction of EU and USA?
3. Whether there is a reasonability among the penalties levied by the commission and
whether it has grown into a matured frame work?
METHODOLOGY
“Doctrinal (Non-Empirical) Method of Research” has been relied upon for conducting the
research. For the purpose of research Books, Reports of Competition Commission of India,
research projects related to Relevant Market have been relied upon.
MODE OF CITATION
A uniform system of Bluebook citation has been adopted throughout the research project.
BIBLIOGRAPHY
Books:
1. D. P. MITTAL, COMPETITION LAW & PRACTICE (3rd ed.).
2. T. RAMAPPA, COMPETITION LAW IN INDIA: POLICY, ISSUES, AND DEVELOPMENTS (2nd ed. 2009).
3. ABIR ROY & JAYANT KUMAR, (2008).
4. AVTAR SINGH & HARPREET KAUR, COMPETITION LAW (1st ed. 2012).
5. VERSHA VAHINI, INDIAN COMPETITION LAW (2016).

6. Vinod Dhall, Competition Law Today: Concepts, Issues and the law in Practice,Oxford
University Press, 2007.
7. Oindrila De and Aditya Bhattacharjea Sepetmber 2012 “Cartels and the Competition
Commission” - The CCI‘s Rs.6,307 crores penalty on eleven big cement providing firms
for cartelization has been the heaviest fine that this commission ever imposed since its
inception. A detailed learning of this and similar other cases dealt by the CCI has fruitfully
finished enquiries exhibits the functioning of a very different commission and law from
that of the earlier MRTP Act. Its successes will certainly send the positive signals to the
concerned parties about it and the results of its violation. Still, there is immense
improvement possible in the Act and its enforcement before it is hoisted to global standards.
8. Mallika Ramachandran “Comparative Study: Law on Abuse of Dominant Position”,

University School of Law and Legal Studies Guru Gobind Singh Indraprastha University
January- May 2006 - This paper attempts to compare the provisions of competition law on
the abuse of dominance and corresponding concepts of the United States, United Kingdom,
European Communities, Germany, South Africa and India. In the Competition laws of all
the jurisdictions studied, the size of a firm or its dominant position as such is not prohibited.
But, abuse of dominance /misuse of market power/ monopoly or the attempt to monopolize
are considered bad under all competition laws despite the differences in concepts
enumerated in the law and manner of determination. Under the laws of most jurisdictions,
the first step in determining whether there is an abuse of dominance, misuse of market
power or ―monopoly or an attempt to monopolize‖ is defining the relevantmarket. In
defining the relevant market, both the relevant product market and the relevant geographic
market have to be defined. The second step is determining whether the concerned
undertaking or enterprise or firm is dominant or has monopoly power or a major degree of
market power. Dominance or monopoly power or market power of undertakings is defined
in most jurisdictions on the basis of the undertakings ability to operate independently of
competition or to raise/control prices. A number of factors are to be taken into consideration
to determine dominance/ economic power / monopoly power. Such criteria may have been
specified in the statute itself such as in Germany and India or may have to be determined
from decided cases. Market share seems to be the most important criterion in all
jurisdictions. ―Barriers to entry to the market‖ seems to be another criterion taken into
account in all jurisdictions. Other criteria taken into account such as regulatory barriers,
size and structure of the market, links with other undertakings etc, and the importance
attached as such criteria vary in different jurisdictions although there may be some common
factors. The author highlights that total market power or the complete elimination of
opportunity for competition is not necessary in order to attract the provisions regarding the
abuse of dominance. What is required is a dominant position or a substantial degree of
market power.
9. Ankita Kashyap “Enterprise 'And' Dominant Position 'Under Competition Act” Indian
Streams Research JournalVolume-3, Issue-11, Dec-2013 ISSN 2230-7850' - This paper
analyses the definition of 'enterprise' as defined under the Competition Act, 2002. It
highlights that only business entities are not considered as an enterprise but revenue
generating organizations including National Sports Federations fall under the purview of
definition of an 'enterprise'. The author attempts to explain this with the help of the BCCI
case study, a recent case decided by the Competition Commission of India. This paper also
throws light on the factors that determine the dominant position and the abuse of the said
dominant position.

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SYNOPSIS FOR THE SUBJECT

ABUSE OF DOMINANCE: THE INDIAN APPROACH

Ms. Parul Meena

Prof., Dr. Anand Raut

ACADEMIC YEAR (2019-20)

AIMS AND OBJECTIVES

1. To study the meaning of “Abuse of Dominance” as understood across different

1. D. P. MITTAL, COMPETITION LAW & PRACTICE (3rd ed.).

5. VERSHA VAHINI, INDIAN COMPETITION LAW (2016).

8. Mallika Ramachandran “Comparative Study: Law on Abuse of Dominant Position”,

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