CCI dismisses complaint against Karnataka government

Competition Commission has rejected allegations of unfair business practices made against Karnataka government and non-profit group Kannada Ganaka Parishat.
The complaint pertained to developing a Kannada language software named 'Kalitha'.
Rejecting the allegations, the watchdog said it is of the prima facie view that the present case does not raise any competition concern which requires its interference.
Applesoft, a software developer for Indian languages, had complained against Karnataka government (Opposite Party 1) and Kannada Ganaka Parishat (OP 3) with regard to Kannada language software 'Kalitha'.
It was alleged that there was instruction that all Karnataka government departments and offices to use the language software developed by Kannada Ganaka Parishat.

According to Competition Commission of India (CCI), the case at hand pertains to transaction between OP 1 and OP 3.

"It is a matter of record that OP 1 placed a formal order with OP 3 in the year 2001 to develop a key board tutor and Kannada software named Kalitha for professed free-distribution to various agencies under the state of Karnataka and general public.
"Nudi software is also a Kannada language software, apparently the newer version of Kalitha software that serves the same purpose. Sometime thereafter, OP 1 advised all its departments to use the same to the exclusion of any other software. This as per the informant amounts to collusion between OP 1 and OP 3," CCI noted.

According to the Commission, the developments which resulted in alleged anti-competitive practices took place much before Competition Act was notified in May, 2009.
"The Act cannot take cognizance of agreements/ understanding/ arrangements that took place before the said cut-off date unless there are actions on the part of the OP 1 and OP 3 that occurred post May 20, 2009 which can be subjected to the Commission's scrutiny.
"There is nothing on record to suggest any such fact which requires interference by the Commission under Section 3 of the Act," CCI said in the order.