New Delhi: Competition Commission has rejected allegations of unfair business practices made against Reliance Industries and Reliance Gas Transportation Infrastructure. In two separate cases, the fair trade regulator has dismissed complaints of abuse of dominant position filed against the Mukesh Ambani group firms.
Noting that Reliance Industries does not have significant presence in the relevant market, the Competition Commission of India (CCI) said the company is not dominant there, according to an order dated November 17. The matter pertained to a dealership agreement entered into by Reliance Industries and the complainant’s firm for operating a retail outlet for sale of petroleum products. It was alleged that the company abused its dominant position by suspending the dealership prior to commencement of operation of the retail outlet in Jharkhand.
The complaint was filed by one Raghavendra Singh, an authorised representative of AnjaniSut Fuel. For this case, the regulator considered ‘retail sale of petroleum products in Jharkhand’ as the relevant market. “… there exists no case against the opposite party (Reliance Industries) for contravention of the provisions of section 4 of the Competition Act,” it noted.
Section 4 pertains to abuse of dominant position. In another case, CCI dismissed a complaint against Reliance Gas Transportation Infrastructure where it was alleged that the entity imposed unfair and unreasonable terms for constructing a natural gas pipeline.
The complaint was filed by power utility Astha Power Corp with respect to a plant in Telangana. CCI considered “transportation of natural gas through pipeline in the state of Telangana,” as the relevant market. It was alleged that Reliance Gas (OP) imposed “arbitrary, unfair and unreasonable anti-competitive terms” in the facility agreement for constructing a natural gas pipeline. Apart from that of OP, no other pipeline provides gas transportation services in Telangana, making the OP dominant in the relevant market, CCI said.
The regulator also noted that Reliance Gas “has not insisted on any precondition for providing access to East West Pipeline (EWPL) owned by it through a hook-up facility”. The complainant has the choice of selecting specialised contractors to carry out the construction of hook-up facility and it is not dependent upon OP only for constructing the same, the order said, dated November 19, said. “… therefore the alleged conduct does not amount to an abuse under section 4 of (Competition) Act,” it added.
