CCI probes ABB India for unfair business ways

Fair trade regulator CCI has ordered a detailed investigation against ABB India for alleged abuse of dominance after finding the engineering major has prima-facie violated competition norms.
The complaint pertaining to the market for static synchronous compensator was filed by Bengaluru-based InPhase Power Technologies Pvt Ltd.
Both entities have their own static synchronous compensators in the market.
Ordering the probe, Competition Commission of India (CCI) said ABB India through "its abusive conduct has attempted to limit supply and scientific development in the market and denied market access to the informant (InPhase Power)".
Besides, it was alleged that ABB abused its dominant position by instituting civil and criminal litigation with malafide intention to stop the informant from doing business.

ABB India, a subsidiary of Swiss major ABB Group, is into the business of manufacturing of electrical equipment such as switch gears and other products.

"The Commission is of the prima facie view that there exists a case of contravention of the provisions of Section 4 of the (Competition) Act by the opposite party (ABB India) and it is a fit case for investigation by the DG," CCI said in an order dated June 9.
Section 4 pertains to abuse of dominant position.
The watchdog's investigation arm Director General (DG) would probe the matter.
To assess the complaint, CCI considered 'manufacture and sale of power quality compensators with IGBT technology for low voltage i.E below 1,000 V in India,' as the relevant market.

Among others, it was alleged that ABB India took undue advantage of dependency of the consumers, by forcing them to purchase its power quality products and not to deal with the informant.
Another allegation was that the company threatened to stop supplies to its customers if they deal with the products of InPhase Power.
CCI has also decided to grant confidentiality regarding the identity of the vendors and customers in the matter.
As per the order, the Commission said the informant has sought confidentiality over the name of the customers/ suppliers, who have come forward to report anti-competitive conduct of the opposite party.

"...The disclosure of the identity of these vendors/ customers may affect the business relationship between them and the opposite party, and may adversely affect their livelihood," it noted.