CCI to investigate Mahyco Monsanto for abuse of dominance in charging royalties for

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CCI to investigate Mahyco Monsanto for abuse of dominance in charging royalties for

June 14, 2016 Leave a commentAntitrust, OthersBy M M SHARMA

The Competition Commission of India (CCI) by way of its order dated June 9, 2016 directed the Director General (‘DG’) to investigate Mahyco Monsanto Biotech (I) Limited, Monsanto Holdings Private Ltd., Monsanto Inc., U.S.A. and Maharashtra Hybrid Seeds Company Ltd. (collectively called as “Opposite parties”) pursuant to an information filed by Kaveri Seed Company ltd, Ankur Seeds Pvt Ltd and Ajeet Seeds Pvt ltd. for alleged contravention of Sections 3 and 4 of the Act.

It has been alleged that Opposite parties(“OPs”) were abusing the dominant position by imposing unfair and discriminatory conditions, charging unfair trait value; limiting scientific development and denied market access. Informants further alleged that the OPs have entered into exclusive supply agreement, refused to deal with Indian seed manufacturers and reserved the right to fix price of seeds in certain circumstances, in contravention of provisions of Section 3 (4) of the Act.

Noticeably, CCI earlier, vide majority order dated 10th February 2016, passed under Section 26 (1) of the Act in Reference Case No. 2 of 2015 and Case No. 107 of 2015, has also directed the Director General (‘DG’) to cause an investigation into the same matter. (Source: Order dated June 9, 2016. For full text see CCI website )

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About the author

M M SHARMA

 Comdt. (Retd.) M. M. Sharma heads the Competition Law & Policy team in VA since 2009 and has over 30 years’ experience as an Advocate of Delhi High Court and holds a Post Graduate Diploma in Economics of Competition Law from Kings College, London. He has worked in the Competition Commission of India (CCI) as Additional Registrar during 2006-2008 and was responsible for drafting the Implementing Regulations under the Competition Act, 2002. He has experience of working as Head-Legal /In-house Counsel for a large Corporate Group in the Steel and Power sector before joining VA in 2009. He has represented clients as an independent arguing Counsel in landmark cases decided by CCI, the Competition Appellate Tribunal (COMPAT) , High Courts and the Supreme Court. As a prolific writer, he contributes articles and is regularly quoted on competition issues in National Newspapers and interviewed by TV Channels. He also teaches as a visiting faculty in various Universities and Institutions and is widely regarded as a subject expert in various Committees of Apex Business Chambers, such as FICCI, CII, ASSOCHAM and PHD CCI.  Mr. Sharma has been mentioned as a “Notable Practitioner” in the “Competition/Antitrust” category of Chambers & Partners (Asia Pacific) Ranking of Leading Lawyers for Business in India for the year 2012 and 2013. VA’s competition law and policy team has also been awarded the Law Firm of the Year Award for “Competition/Antitrust Law” for 2013 by the Indian Business Law Journal. Included as a ‘Recognised Practitioner’ in Individual Lawyers’ranking by Chamber’s Asia Pacific Guide 2020 for Antitrust/Competition Law.