Velusamy Karuppannan Vs AVEVA Group Ltd (Competition Commission of India)
Background: Velusamy Karuppannan filed an Information under Section 19(1)(a) of the Competition Act, 2002, against AVEVA Group Limited (OP-1), AVEVA Solutions India LLP (OP-2), and AVEVA Information Technology India Private Limited (OP-3), alleging contraventions of Sections 3 and 4 of the Act. The Informant, a software professional in the manufacturing IT segment, claimed that AVEVA used its dominant position to restrict competition and force customers to purchase bundled industrial software solutions, particularly the Flex Subscription, which included MES, SCADA, and Historian software.
AVEVA, a global leader in industrial software headquartered in the UK, provides digital solutions for operational efficiency in sectors such as oil and gas, manufacturing, and energy. Its product suite includes AVEVA MES, Historian (PI System), System Platform, AVEVA Edge, and Plant SCADA. AVEVA operates in India through OP-2 and OP-3, offering implementation, training, and support services. The Informant alleged that AVEVA’s licensing model and bundling practices restricted consumer choice, created high switching costs, and prevented market access for competitors.
Allegations: The Informant claimed AVEVA:
- Coerced customers to buy its Flex Subscription, hiding perpetual license options.
- Imposed high minimum commitments, locking in customers and limiting alternatives.
- Offered certain products (Historian and SCADA) for free to selected customers, distorting competition.
- Practiced tying arrangements, requiring customers to buy bundled products instead of individual software.
- Maintained outdated software requiring specialized technical support, further restricting switching.
The Informant cited incidents involving Nestlé and Olam, suggesting that AVEVA leveraged its perceived dominance to exclude competitors or secure preferential treatment, and highlighted mergers with Schneider Electric and OSIsoft as factors enhancing market power.
