Tue. Oct 27th, 2020

Standard Chartered Bank does not enjoy dominant position in the relevant market of “provision of credit card/loan facilities by banks in India”

2 min read

Competition Commission of India: CCI
in its order under section 26(2) of the Competition Act, 2002 closed the case
against the Standard Chartered Bank (SCB) for alleged abuse of dominant
position. The Informant filed information alleging abuse of dominance by SCB in
credit card service facility. It was alleged that terms and conditions imposed
on him by SCB are arbitrary and unilateral. Practices like charging of interest
after operation of card, compounding of interest, etc. were also alleged to be
unfair.  The informant averred that information
provided by SCB to the Credit Information Bureau (CIB) was arbitrary which may
forbid him to avail any loan facility from any bank in future as the banks
generally conduct due diligence by referring to the information available with CIB.

The CCI
determined the relevant market as “provision of credit card/loan facilities by
banks in India”
and observed that many banks such as Citibank, American Express, IndusInd Bank,
HSBC, RBL, Axis Bank, HDFC Bank, State Bank of India operate along with Standard
Chartered Bank and offer similar services. As the informant failed to place any
material evidence on record to show that SCB operates independently of the
competitive forces prevailing in the relevant market or that it can affect its
competitors or consumers or the relevant market in its favour. The Commission ruled
that prima facie, Standard Chartered
Bank does not appear to be dominant in the relevant marker and closed the
matter. [In re Vikas
Kumar Goel v. Standard Chartered Bank, Case No. 41 of 2015, decided on 23rd June, 2015]
Source: Legal news India

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