The Competition Commission has dismissed allegations of unfair business practices against global internet firm Naspers-owned PayU Payments and Wibmo, citing lack of evidence showing any abusive conduct.
The order came after a complaint stated that on acquisition of Wibmo by PayU, the combined entity is directly or indirectly likely to result in unfair or discriminatory conditions in availing e-payment processing gateway services in India.
The complainant said that PayU is a dominant player in the market of e-payment processing gateways in India with a high market share in some sectors.
It was alleged that PayU has intentionally foreclosed the market for other competitors by denying them proper access to Wibmo in the downstream market and has substantially created entry barriers for new market players by capturing the downstream market through Wibmo so that no other competitor can use a safe pathway to lead customers towards a safe e-payment transaction.
However, the regulator noted that no evidence was furnished which could suggest that the opposite parties have indulged in such abusive conduct.
It said "while the Act prohibits an abuse of dominant position by an enterprise, mere existence of dominant position, without any prima facie evidence of its abuse, is not recognised as an anti-competitive conduct in the scheme of the Act."
It further noted that "the informant has merely stated that there is reduction in transaction time and a more secured payment ecosystem, owing to such integration...Thus, in the absence of any alleged abusive conduct, it will be legally untenable to direct an investigation under the Act".
PayU is a fintech company that provides payment technology solutions to online merchants, while Wibmo is a leading technology and service provider for financial services industry, best known for its hosted risk-based authentication, 3D secure, and payment security services.
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