CCI disposes of case against ACI Worldwide

The Competition Commission (CCI) has disposed of a plea alleging unfair business practices by US-based payment solutions company ACI Worldwide Inc and its arms based in India and Singapore.
The commission had initiated a detailed probe in the case following a complaint by Financial Software and System which had alleged that ACI abused its dominant position with respect to services in respect of customisation and modification of Electronic Fund Transfer (EFT) software in India.
It was also alleged, among others, that ACI had imposed unfair conditions in the purchase or sale of goods or services through exclusive supply arrangements with banks as well as had limited and restricted technical or scientific development in the market.

The CCI's investigation arm Director General (DG) had concluded that there were violations of competition norms by ACI Worldwide, its Indian arm ACI Worldwide Solutions and its Singapore subsidiary ACI Worldwide (Asia).
In an order released today, CCI said that "no contravention of ... The (Competition) Act is made out against ACI in the present matter".
The Commission noted, among others, that the evidence did not "sufficiently establish" that ACI operates independently of competitive forces in the relevant market.

"As the dominance of ACI has not been established, the issue of abuse of dominant position does not arise," CCI said.

With regard to anti-competitive agreements entered by ACI, the regulator noted that "since ACI Banks are the buyers/ consumers and are not part of the production chain, this agreement also does not fall within the purview of...The Act".
Dissenting with the majority order, CCI member S L Bunker said that ACI had violated competition norms and accordingly a penalty of Rs 4.52 crore should be imposed on the company.
Bunker observed that "ACI's decision to not grant consent to any third party including the informant for provision of such services along with sub contracting arrangement entered with the providers of these services, has allowed ACI to enter and strengthen its position in the downstream market of provision of professional services".

"Because of the said decision of ACI, the existing players like the informant have been denied market access to the downstream market," Bunker said.
Bunker also noted that the company's conduct also amounted to limiting technical and scientific development relating to professional services.