CCI dismisses case of unfair biz practices against Royal Western Club

The Competition Commission has dismissed a complaint alleging unfair business practices against Royal Western Turf Club in conducting horse races in Mumbai and Pune.

In an order, the fair trade regulator said that commission finds "no case of contravention" of either Section 3 or 4 of the Competition Act against Royal Western Turf Club India.

Section 3 and 4 pertains to anti-abusive agreements and abuse of dominant position in the relevant market, respectively.

As per the CCI, Royal Western is a club registered under Companies Act and has 600 approved horse owners, 46 licensed horse trainers and around 80 licensed horse jockeys.

The ruling came on a complaint by Habib Rajmohamad Patel, alleging the members of three apex committees of the club -- management committee, stewards of the club and board of Appeal -- are violating the principles of competition while conducting horse racing and betting operations at Mumbai and Pune race courses.

Besides, the complainant alleged that the members are either race horse owners or stud farm owners and have direct interest in the races and are controlling racing activity by imposing unfair and discriminatory conditions for getting results in their favour, which ultimately results in appreciable adverse effect on the racing competition.

It also said that by indulging in such activities, the club has contravened Section 3 and 4 of the Act.

For the case, the Competition Commission of India (CCI) considered the "market for organisation of horse races by turf clubs in India" as the relevant one and observed that there are other entities who also provide similar services apart from Royal Western Turf Club.

Further, the regulator said that the club hosts only 23 per cent of the major horse races being organised across India, hence it is not in a dominant position in the relevant market.

In the absence of dominance, there is no case to examine abuse of dominance by the club, the regulator said in an order dated Jan 15.

Regarding anti-abusive agreements or Section 3, the CCI said 'the agreement' is necessary to prove contravention of the Section 3. However, the complainant has not submitted any material pertaining to any such 'agreement'.

On betting, the regulator said the club has pointed out that the members of board of appeal and stewards of the club are barred from betting in any race conducted by the Royal Western Turf.

Accordingly, the CCI dismissed the complainant after finding no contravention of the Competition Act.