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Dec 18, 2020

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

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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