DLF is not in dominant position in Delhi, no prima facia case of abuse arise

Competition
Commission of India:
 In a sigh of relief to DLF, a
building giant already facing fair play litigations, the market competition
regulator CCI closed a case alleging abuse of dominant position. The informants
in the present case alleged that DLF compelled them to enter into one-sided
and unfair Apartment Buyers’ Agreement and made them pay an unreasonable penal
interest @ 18% p.a. for delay in making payments.

Considering the facts of the present case, CCI
declared the market of ‘provision of services relating to development and
sale of residential apartment in Delhi’
as the relevant market in the case. The Commission further noted that in the geographic
region of Delhi,
DLF is just one of the real estate developers engaged in the provision of
services relating to development and sale of residential apartment. There are
many other real estate developers operating in Delhi who are engaged in the provision of
services relating to the development and sale of similar residential dwelling
units. Some of such developers include Delhi Development Authority, Ansal API,
Umang Realtech, Emaar Group, CGHS Group, Parsvnath, etc. These
developers appear to pose competitive constraints to DLF in the relevant
market. Also, presence of these real estate developers in the relevant market
indicates that the Informants were not dependent upon DLF for purchasing
residential apartments.

The Commission was of the opinion that DLF prima
facie does not appear to be dominant in the relevant market defined. Since
DLF is not in a dominant position, the question of its conduct being abusive
could not arise. Accordingly, no prima facie case of contravention of
the provisions of section 4 of the Competition Act, 2002 appeared
against DLF and the matter stands closed under the provisions of section
26(2) of the Act. [Ess Cee Securities Pvt. Ltd. v. DLF
Universal Limited, Case No. 45 of 2015; decided on
26.08.2015]
Source: Legal news India

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