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Compliance with TRAI regulations Does Not Rule Out Competition Law Violations: CCI

Case Law Details

TaxGuru Citation
2024 taxguru.in 4165
Case Name
Extreme Infocom Pvt. Ltd. Vs National Internet Exchange of India (NIXI) (Competition Commission of India)
Date of Judgement/Order
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Extreme Infocom Pvt. Ltd. Vs National Internet Exchange of India (NIXI) (Competition Commission of India)

The Competition Commission of India (CCI) examined the dispute between Extreme Infocom Pvt. Ltd. (the Informant) and the National Internet Exchange of India (NIXI) regarding jurisdictional issues and alleged anti-competitive practices.

The main preliminary objection raised by NIXI was the CCI’s lack of jurisdiction, citing a pending writ petition before the Delhi High Court that challenged a Union of India order. This order mandated that internet exchange points (IXPs), including the Informant, required licensing under the Indian Telegraph Act, which falls under the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI). NIXI argued that TRAI, being the sectoral regulator, should handle the matter, with the CCI stepping in only after TRAI’s conclusion.

The CCI addressed the preliminary objection and determined that its jurisdiction was not completely ousted by TRAI’s regulatory framework. The CCI noted that compliance with TRAI regulations does not preclude the possibility of a violation of competition law. The Supreme Court’s judgment in the Bharti Airtel case reaffirmed the CCI’s role in examining anti-competitive practices even when a sectoral regulator is involved.

The Commission emphasized that its mandate to ensure fair competition and protect consumer interests is independent of TRAI’s regulations. The overlap in jurisdiction does not invalidate the CCI’s authority to investigate potential abuses of dominance.

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