CCI dismisses allegations of abuse of dominance against Maharashtra State Power Generation Company*

On November 30, 2017, CCI dismissed the allegations of abuse of dominance against Maharashtra State Power Generation Company (‘MAHAGENCO’) with respect to the qualification criteria provided by MAHAGENCO for the bidders in its tender.

Shri Vijay Menon filed the information before CCI against MAHAGENCO alleging that MA- HAGENCO has abused its dominant position by putting a qualifying requirement in its tender floated in the month of September, 2017 for coal liaisoning services, whereby it disqualified bidders against whom an inquiry was pending before CCI or who have already been penalized by CCI. While holding the issue as purely administrative in nature, CCI recognized the discretion a consumer should have to exercise choice and to frame terms and conditions of tender documents so as to best secure an optimal outcome. CCI was, however, cautious to further point out that consumer discretion should be allowed so long as it does not restrict market entry and allows vendors to freely compete in the procurement process. It also remarked that competition concerns could arise in rare cases where a monopoly buyer exercises the option in an anti- competitive manner. CCI found no case of contravention established against MAHAGENCO, and thereby it closed the matter under Section 26(2) of the Act.

*Case No. 61 of 2017.

Published In:Inter Alia - Special Edition Competition Law January 2018 [ English
Date: January 3, 2018