Tamilnadu Consumer Products Distributors Association had filed a complaint against Britannia Industries and Britannia Dairy Pvt Ltd.
It was alleged that the entities abused their dominant position and among others, did not allow their distributors to deal with any other biscuit manufacturing company even through their sister concerns.
Rejecting the complaint, CCI said there is no contravention of Section 4 in the Competition Act that pertains to abuse of dominant position.
For the case, the Competition Commission of India (CCI) considered "market for biscuits in India" as the relevant one.
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"Presence of such players indicates that the buyers have options to choose in the relevant market. Thus, it is found that market for biscuits, including each of the segments therein, exhibits intense competition and opposite parties do not possess sufficient market power to act independently of competitive forces prevailing in the relevant market."
"The other bakery and dairy products supplied by opposite parties viz. Cakes, rusk, milk, ghee, cheese, butter, etc face intense competition from organised and un-organised local players; and the business of opposite parties in these segments appears to be relatively insignificant," the order dated March 29 said.
"Accordingly, it does not merit making assessment of dominant position in respect of these products and it can reasonably be presumed that the conduct of opposite parties in relation to these products cannot be considered as contravention.