On November 4, 2020, the NCLAT upheld CCI’s order dismissing allegations of abuse of dominance against Hexagon Geosystems India Pvt. Ltd. (‘Hexagon’). ^[1]

M/s Sowil Limited (‘Sowil’), the informant, had alleged that Hexagon contravened the provisions of the CA02 by charging high prices for the supply of rolling stock mounted ground penetrating radar (‘GPR’) for ballast inspection at high speeds. While Sowil had failed to delineate a relevant market, CCI observed that there were at least four other major global players in the market for rolling stock mounted GPR for ballast inspection in India. Accordingly, CCI dismissed the information, noting that Hexagon did not appear to command any market power.

Sowil appealed this order stating that CCI, in its prima facie order, failed to follow the required three step process of: (i) delineation of relevant market; (ii) establishing dominant position in the delineated relevant market; and (iii) establishing a prima facie case for abuse of dominant position.

The NCLAT noted that Sowil was attempting to put the burden of delineating the relevant market on CCI instead of itself defining or suggesting a relevant market with prima facie material. The NCLAT noted that, in any event, CCI’s order showed the existence of other players in the market and therefore agreed with CCI’s reasoning and dismissed the appeal.

[1]Competition Appeal (AT) No. 17 of 2020, order dated November 4, 2020