Competition Comm rejects complaint against IOC

Fair trade regulator CCI has dismissed allegations that Indian Oil Corporation abused its dominant position with regard to transfer of LPG consumer numbers from one distributor to another in Uttar Pradesh.
Finding that the matter does not raise any competition issue and therefore does not fall within the ambit of the Competition Act, the regulator has rejected the complaint.
Among others, it was alleged that IOC unilaterally transferred LPG consumer numbers of the informants from one distributor to another without giving any reason.
To ascertain whether competition norms were violated or not, CCI considered "market for the provision of services for distribution of LPG cylinders in Badaun district of Uttar Pradesh," as the relevant market.

Noting that there are two other players with comparable size and resources who pose competitive constraints, the regulator said IOC does not appear to be in a dominant position.
"Presence of such players indicates that the consumers have option to choose from other LPG suppliers in the relevant market," CCI said in a recent order.
The allegations that IOC has unilaterally changed their LPG consumer numbers from one entity to another does not raise any competition issue and therefore, does not fall within the ambit of the Competition Act, the order noted.