Case Law Details
Creed Gym Vs Curefit Services Pvt. Ltd. (Competition Commission of India)
Introduction: In a recent legal battle that has captured the attention of the fitness and business communities in India, Creed Gym and Curefit, two prominent players in the fitness industry, found themselves at the center of a controversy. The Competition Commission of India stepped in to address the allegations raised by Creed Gym against Curefit, shedding light on contractual breaches and potential anticompetitive practices.
Background and Allegations: Creed Gym, a registered partnership firm operating a renowned fitness and wellness center named “Creed Gym” in Hyderabad, accused Curefit Services Pvt. Ltd., a company engaged in various business ventures, of violating provisions under Sections 3 and 4 of the Competition Act, 2002. The Informant alleged that Curefit, through its collaboration with various gyms and fitness centers, engaged in practices that hindered fair competition and exploited its dominant market position.
The Informant’s grievances centered around a collaboration agreement signed between Creed Gym and Curefit. Under this agreement, Creed Gym was listed on Curefit’s online platform, allowing customers to access its services through the cult.fit application. However, disputes arose when Curefit allegedly breached contractual obligations by collaborating with fitness centers within a restricted radius, thus impacting Creed Gym’s market presence. Moreover, Creed Gym claimed that Curefit misused its customer database, shared confidential data without authorization, and engaged in practices detrimental to Creed Gym’s financial stability.
Competition Commission’s Examination: The Competition Commission of India undertook a detailed examination of the allegations and the collaboration agreement between Creed Gym and Curefit. The focal point was the removal of Clause 9 from the agreement, which initially provided exclusivity within a certain radius. Curefit defended the removal of this clause, stating that it encouraged competition by allowing more gyms to partner with them, thereby offering consumers a broader range of choices.
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