CCI rejects complaint against Subway Systems India

The Competition Commission has rejected allegations that Subway Systems India indulged in unfair trade practice and abused its dominant position in relevant market of franchisee services for fast-food restaurant chain.
The complaints were also filed against Subway International and Doctor's Associates Inc, which were rejected by the fair trade regulator.
The complaint filed by one Ramamurthy Rajagopal alleged that Subway abused its dominant position by imposing unfair condition in so far as the Central Value Added Tax (CENVAT) credit is concerned.
He also alleged about anti-competitive terms and conditions of the franchisee agreement executed between him and Subway Systems India.

Subway is an international restaurant chain and is engaged in the business of fast food and operates its business through its franchisees.
In an order, CCI said that the Commission is of the firm view that Subway Systems India does not enjoy a dominant position in the relevant market.

"... The Commission finds that no prima facie case of contravention of the provisions of sections 3 and 4 of the Act is made out against Subway Systems India in the instant matter," the Competition Commission of India (CCI) said in the order.
The Sections 3 and 4 of the Act pertain to anti-competition agreement and abuse of dominant market position, respectively.

Doctor's Associates owns the proprietary system for establishing and operating restaurants under the brand name 'Subway', while Subway International has a non-exclusive sublicence to use this brand and sub-licence the establishment of restaurants.