CCI to probe JCB India for abuse of dominant position

Competition Commission will investigate construction equipment maker JCB India for alleged abuse of its dominant position to keep away competitors from the market.
The regulator has ordered a detailed probe into the matter after finding prima-facie evidence that JCB India and its subsidiary, JC Bamford Excavators, had abused their dominant position in market for construction equipment.
The probe comes after a complaint by Bull Machines, also a construction equipment maker, had alleged that JCB India had abused the judicial system to restrain it and its dealers from dealing in "backhoe loaders", a machine used in construction activities.
It is alleged by Bull Machines that JCB India obtained a court order by misrepresenting information and documents.

In an order dated March 11, the Competition Commission of India (CCI) noted that "the predation through abuse of judicial processes presents an increasingly threat to competition, particularly due to its relatively low anti-trust visibility".
"JCB by abusing their dominant position in the relevant market sought to stifle competition in the relevant market by denying market access and foreclosing entry of 'Bull Smart' in contravention of the provisions of...The (Competition) Act," it added.

Accordingly, CCI has directed its investigation arm, the Director General (DG), to carry out a detailed probe.
The case relates to manufacture of a low cost backhoe loader by Bull Machines but before it could formally launch it the was served with an "ex parte interim injunction order granted" by the Delhi High Court.

It was alleged by JCB India to the court that Bull Machines had infringed the design registrations/copyright of the in developing the backhoe loader.
The court order had restrained Bull Machines and its dealers from dealing in the product.
"It is the case of the informant (Bull Machines) that the bad faith litigation initiated by JCB against it alleging infringement of its design rights was totally false and that the said legal proceedings before the High Court of Delhi were only initiated to harass it and prevent the launch of 'Bull Smart', which in effect would have competed with backhoe loaders of JCB in the relevant market," the CCI order said.