Fair trade watchdog CCI has rejected allegations that Simplot India and its group entities indulged in anti-competitive practices in the market for potato-based food products and food appetisers.
The complaint filed by agro and food processing company, Himalya International, had alleged -- Simplot India, Simplot India Foods and Comida Foods -- of slapping anti-competitive provisions in joint venture agreements.
The three Simplot entities and Himalya have a joint venture company by name of Himalya Simplot Private Ltd. Simplot India is a subsidiary of global food and agribusiness conglomerate JR Simplot Company.
Himalya had alleged that as per terms of the joint venture agreement it was barred from selling its potato-based food products and food appetisers in the Indian market as all the "rights of exclusivity" were taken by Simplot resulting in appreciable adverse effect on competition within the country.
In its order dated March 6, the Competition Commission of India (CCI) said that there did not exist a prima facie case for directing its investigation arm, the Director-General, to carry out a detailed probe.
According to the fair trade watchdog, the exclusive selling and distribution arrangement "was the very purpose of the formation of the JV Company and was voluntarily adopted" by Himalya and Simplot to further their respective business interests and therefore the same cannot be termed to be anti-competitive.
"There is no case of any exclusivity imposed upon the Informant (Himalya) by the opposite parties (Simplot), as has been alleged in the information," CCI said.
The regulator also said that Simplot entities were not dominant in the relevant market of the "marketing, selling and distribution of potato-based food products and food appetisers in India".
