CCI rejects case against CPWD and Madhya Pradesh's PWD

The Competition Commission has rejected charges of abuse of dominant position against Central Public Works Department (CPWD) and Madhya Pradesh's PWD related to getting accreditation for product-testing laboratories.
A complaint had alleged that the public workd department under Madhya Pradesh government had imposed unfair condition that 10-20 per cent samples be tested from a lab accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
Besides, it had alleged that CPWD imposed a condition in the course of approving the outside private laboratories that the laboratory must be NABL approved.
According to the complaint even though there were three accreditation bodies in the country, the two departments were promoting NABL, consequently, affecting the business of those laboratories which are not accredited with NABL.

In an order dated October 29, the Competition Commission of India (CCI) said that it found "prima facie case, no case of contravention of the provisions of...The (Competition) Act" against the departments.
"The activities being performed by the opposite parties do not come under the definition of enterprise in terms of... the Act as they are not directly engaged in any economic and commercial activities," CCI said.

"The opposite parties have no existence in the relevant market, except for laying down norms as to the authorisation of accreditation bodies for specific purposes," the regulator said, adding that the departments role was limited to planning, designing, construction and maintenance of government assets.

"Therefore, the conduct of the opposite parties does not give rise to any competition concern," it added.
NABL is an autonomous body established by the government with the objective to provide government, industry and associations with a scheme for third-party assessment of the quality and technical competence of testing and calibration laboratories.
The government has authorised NABL as the sole accreditation body for testing and calibration laboratories, the order said.