NCLAT Upholds CCI’s Order Dismissing Allegations of Abuse of Dominance against Kerala Agro Machinery Corporation Ltd Pvt. Ltd

On November 4, 2020, the NCLAT upheld CCI’s order dismissing allegations of abuse of dominance against Kerala Agro Machinery Corporation Ltd (‘KAMCO’) brought by the informant. ^[1]

It was alleged that KAMCO had appointed authorized dealerships to other dealers for Guntur, Vijayawada and Srikakulam, even though the informant was still an authorized dealer and arbitrarily ceased to provide additional stock to the informant.

CCI observed that KAMCO was well within its rights to appoint additional dealers in the above-mentioned areas and this did not raise any competition law concerns. In fact, this could improve intra-brand competition. CCI also observed that the informant did not provide any evidence to substantiate the allegations that KAMCO not providing additional stock to the informant.

The NCLAT agreed with CCI’s reasoning and dismissed the appeal.

 

[1] Competition Appeal (AT) No. 18 of 2020, order dated November 4, 2020