CCI rejects anti-competitive charges against ministries

Competition Commission of India (CCI) has rejected charges that the Ministry of Communication and Information Technology and the Ministry of Commerce indulged in unfair trade practices with respect to e-tendering softwares, solutions and services.
The complaint was filed by application software solutions and services provider NexTenders (India) against the two ministries as well as National Informatics Centre (NIC), National Informatics Services Inc (NISI), ITI Ltd and Karnataka State Electronics Development Corporation.
The entities were accused of abusing their dominant market position by providing e-procurement solutions to the central government, state governments, government departments, PSUs and government agencies, among others, without an open tender or any competitive bidding process.

It was alleged that the NIC, NISI and ITI as agencies/ undertakings of the Communications & IT Ministry were trying to control the market which comprised of the government and government-owned entities such as the PSUs.
In an order released today, CCI said that "no case of contravention of the provisions of the (Competition) Act is made out against the opposite parties and the information is ordered to be closed forthwith...".
The fair trade watchdog observed that the conduct of the entities to engage vendors without bidding process "per se may not fall foul of the provisions of...The Act so long as the central government does not impose e-procurement solutions of its entities upon any other ministry of central/ state and other government agencies, PSUs, etc and so long as they are left free to obtain e-procurement solutions through other vendors".

It also noted that the government had assured the Delhi High court that it would not impose its e-procurement solution to any government-owned entity.

"...In view of the policy prescription and solemn assurance given by the Central Government before the Delhi High Court, the grievances raised by the informant herein stand squarely covered and addressed," CCI said.
"However, if the policy prescription is not followed by the government or the solemn assurance given before the high court is not adhered to, the remedies therefor shall lie elsewhere," it added.
Among others, it also noted that a criterion other than tendering/ bidding cannot be construed as anti-competitive so long as the same is not unfair or discriminatory or otherwise results in denial of market access to other market players.

Ministry of Communications & Information Technology frames policies in respect of software, IT and e-governance including the National e-Governance Plan of the government. Ministry of Commerce is tasked with the implementation of the e-procurement mission mode project under the national e-Governance Plan of the government.