CCI dismisses complaint against 2 Merlin Group cos

The Competition Commission has dismissed a complaint alleging abuse of dominance against two Merlin Group companies with regard to sale of residential flats in Kolkata.

The companies are Merlin Developers and Merlin Projects (Opposite Parties).

The complaint filed jointly by Cambridge Residents Welfare Association, its president and secretary, alleged that the opposite parties abused their dominant position by adopting one sided agreement for sale of residential apartments in Merlin Cambridge, which is unfair, discriminatory and lopsided.

Members of Cambridge Residents Welfare Association are owners of residential flats in Merlin Cambridge, a multi-storied building built, developed, advertised and marketed by the two Merlin Group companies.

For the case, the Competition Commission of India (CCI) considered the market for 'provision of services for development and sale of residential flats in Kolkata' as the relevant one.

In a 14-page order dated July 9, the regulator said there existed significant number of resourceful and well established developers in relevant market to constrain Merlin Developers and Merlin Projects.

"The Commission is, therefore, of the prima facie view that the OPs (Opposite Parties) are not found to be dominant in the relevant market during the relevant period and in the absence of dominance, the conduct of the OPs is not required to be assessed for alleged abuse within the meaning of Section 4 of the (Competition) Act," the CCI said.

Section 4 pertains to abuse of dominant market position.

Noting that "no prima facie case of contravention of the provisions of Sections 4 of the Act" is made out against Merlin Developers and Merlin Projects, the regulator disposed of the case.

Apart from the two Merlin Group companies, the complaint was also against their family members or office bearers and several other related entities.

However, noting that the allegations mainly pertained to Merlin Developers and Merlin Projects, the CCI analysed the case with respect to them only.