No Abuse of Dominance Found as Price Variations Linked to Market Factors: CCI

Kshitij Srivastava Vs Arthur Flury India Private Limited (Competition Commission of India)

The Competition Commission of India examined information filed under Section 19(1)(a) of the Competition Act, 2002 alleging abuse of dominant position in the supply of Short Neutral Section Assemblies (SNSA). SNSA is a critical safety component used in overhead equipment traction systems of Indian Railways and is classified as a controlled item requiring procurement from approved sources of the Research Designs and Standards Organisation (RDSO).

The Informant stated that historically two foreign suppliers were approved, but due to the Make in India policy and restrictions on global tenders below Rs. 200 crore, these suppliers became ineligible. Consequently, the Opposite Party (OP), after receiving RDSO approval as an indigenous supplier in May 2023, became the only effective eligible supplier for Indian Railways tenders. The Informant alleged that the OP misused this position by charging inflated prices, reducing prices after entry of a competitor, ignoring adverse exchange rate trends, and adopting dual pricing by quoting higher prices to Indian Railways compared to EPC contractors.

The Commission identified the relevant market as the market for SNSA in India, noting that SNSA has no substitute and Indian Railways is the primary procurer. It observed that the OP was dominant during the period from March 2023 to December 2024 due to its status as the only approved indigenous supplier. However, it also noted the presence of developmental vendors and subsequent entry of another approved supplier, indicating that market entry was not foreclosed.