CCI dismisses complaint against Danone's subsidiary

Fair trade regulator CCI has dismissed a complaint alleging abuse of dominant market position against global food and beverage giant Danone's Indian subsidiary Nutricia International with regard to supply of certain products.

In an order dated August 28, the Competition Commission of India (CCI) said "no prima facie case of contravention of the provisions Section 4 of the (Competition) Act" is made out against Nutricia.

Section 4 pertains to abuse of dominant market position.

The complaint against Nutricia was made by one Uttar Pradesh-based Prabhakar Pandey, a stockist of several pharmaceutical companies including Wockhardt.

As per the order, Wockhardt transferred its mother and child care (MCC) business to Nutricia, following which the complainant became a stockist of the latter.

It was alleged that Nutricia failed to supply certain products for which payments had already been made by the complainant. However, no information was given about the exact products ordered.

For the case, the regulator considered the markets for infant formula milk, baby food nutritional supplements, and protein-based nutritional food supplements in India, as the relevant ones.

While delineating the relevant markets, CCI had taken into account that Wockhardt had transferred the business of four medical nutritional brands comprising Dexolac, Farex, Nusobee and Protinex under its MCC division to the Indian subsidiary of Danone.

In its order, the CCI said there are several major infant formula milk players in India and that there are many alternatives to Protinex in the relevant market.

Noting that Nutricia "does not appear to be in a dominant position in any of the relevant markets", the regulator said in the absence of such position, the issue of abuse of dominance need not be examined.

Accordingly, the regulator disposed of the complaint.