CCI rejects anti-competitive case against IOC, Mahanagar Gas

Competition Commission has also rejected the allegations of cartel-like behaviour levelled against the two firms

The Competition Commission of India (CCI) has rejected charges against Indian Oil Corporation (IOC) and Mahanagar Gas of unfair business practices with respect to distribution of compressed natural gas (CNG).

In a complaint, Bharat Garage, a partnership firm engaged in the distribution of CNG, had alleged an agreement was between IOC and Mahanagar Gas was anti-competitive, limited the production/supply of CNG and caused an appreciable adverse effect on the competition.

Finding no prima facie case, CCI in recent order  noted the agreement wherein IOC would be selling the product of the Mahanagar Gas through its outlets “is not exclusive in nature thus, such an agreement does not seem to be anti-competitive in nature”.

CCI has also rejected the allegations of cartel-like behaviour levelled against the two firms.

With regard to allegations pertaining to charging of commission by IOC, issue regarding the termination of agreement with the complainant, non-supply of

CNG by Mahanagar Gas, among others, CCI said these “prima facie, do not point to any activities/conduct contravening provisions of...the (Competition) Act”.

Mahanagar Gas was charged with the function of ensuring an adequate supply of CNG to customers in the state of Maharashtra.

In order to discharge this function, the firm had executed agreements with dealers and oil companies for the distribution of CNG.