CCI disposes of case against Nilpeter and SaiCom

The Competition Commission has disposed of the case alleging unfair business practices against Nilpeter India and SaiCom Codes Flexo Print with respect to services for label printing machines.
The fair trade regulator's ruling comes even as its investigation arm Director General (DG) had concluded that there were violations of competition norms.
The Competition Commission of India (CCI) had initiated a detailed probe in the case following a complaint by Magnus Graphics, a firm engaged in label printing, which had alleged that both the enterprises had entered into an anti-competitive agreement with each other.
The complaint had also alleged that Nilpeter had abused its dominant market position.

Besides, the company the probe had been carried out against Nilpeter's Managing Director and Sales Manager.
It was alleged that under the agreement Nilpeter could not provide maintenance services of its printing machine to Magnus as the entity was a competition to clients of Sai Com Codes Flexo.

Disposing of the case in an order dated December 2, the Competition Commission of India (CCI) said that "no case of contravention of the provisions of... The (Competition) Act is made out against any of the opposite parties and the matter is ordered to be closed forthwith".
It noted that Nilpeter "cannot be said to be in a dominant position in the relevant market even as defined by the Director General and the issue of abuse of dominant position does not arise".

In this regard, CCI, among others, noted that the label printing machines "can be serviced by freelance engineers/ Independent Service Provider and service parts are also appear to be available in the local market".
The Commission also disposed of the allegation with relation to anti-competitive agreement between Nilpeter and SaiCom Codes as it noted that the same was not in violation of competition norms.
According to the regulator, the norms pertaining to an agreement amongst enterprises or persons at different stages of the production chain in different markets would be in violative if such pact "causes or is likely to cause an appreciable adverse effect on competition in India".

"In the present case, the opposite party (SaiCom Codes) being a buyer/consumer is not part of any production chain and as such the provisions of...The (Competition) Act are not attracted," CCI said.