CCI to investigate the Chettinad International Coal Terminal Pvt. Ltd. and Kamarajar Port Ltd. for alleged abuse of dominance

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CCI to investigate the Chettinad International Coal Terminal Pvt. Ltd. and Kamarajar Port Ltd. for alleged abuse of dominance

January 5, 2016 Leave a commentAntitrust, News and EventsBy M M SHARMA

CCI, by its order dated January 04, 2016 has initiated an investigation against Kamarajar Port Ltd. (the erstwhile Ennore Port) and Chettinad International Coal Terminal Pvt. Ltd. (Chettinad) against alleged abuse of dominant position. The case was filed by an association of Tamil Nadu Power Producers Association (TNPPA).

Chettinad is engaged in the procuring terminal services at Ennore Port. Since all coal is transported through sea which is then transferred from the ports to the power plants through roads or railways, the Chettinad Coal Terminal acquired prima-facie dominant position. Since, no other alternative avenues were available to import coal for power plants, the power producers situated around the Ennore Port had to rely on Chettinad terminal.

It has been alleged that owing to its position of monopoly Chettinad drastically increased its charges from INR 180/MT to INR 300/MT in October 2011. Chettinad has allegedly imposed unregulated charges, charging for coordination and liasoning services (to one M/s Breeze Enterprises Pvt. Ltd.) in an unfair manner.

The CCI considered the relevant market as the market of provision of coal terminal services in and around Kamarajar Port. The CCI considered that Chettinad terminal has a market share of 100% and does not face any competitive concerns.

The CCI was of the prima-facie opinion that levying of liasoning charges was unfair and abusive. The Director General (DG) has been directed to investigate the conduct of Chettinad for abuse of dominant position.

(Source: CCI: Order dated January 04, 2016. For full text see CCI website)

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.