The Competition Commission of India (CCI) recently dismissed a case filed by a social activist alleging harm to consumer welfare in the form of higher prices of beverages sold in multiplex malls viz.-a-viz. retail markets. The decision was delivered on 28 February 2019.
In this update, we have analyzed the procedure adopted by the CCI in the context of exclusive supply and distribution agreements between multiplex malls and manufacturers of beverages and its impact on the jurisprudence of non- horizontal restraints in the Indian market.
the Competition Act, 2002 (Act), the commission has the discretion
to form an opinion, based on the information provided by an
informant, submissions of the opposite party(ies) and publicly
available information, on whether or not to proceed with a case. In
terms of Section 26(1) of the Act, if the CCI is of the view
that the case requires an investigation, then it directs the
director general, which is the investigative wing of the CCI, to
conduct an investigation into the matter and submit a report for
the CCI to act upon.
The key highlights of the decision analyzed in this update are as follows: