CCI by its order dated November 17, 2015 ordered dismissed allegations of violation of Section 4 of the Act, in an information filed by AnjaniSut Fuel (Informant) against Reliance Industries Ltd.(RIL)

In order to obtain the dealership from RIL for operating a retail petroleum outlet in Jhumri-Telaiya, Koderma, Jharkhand, the Informant constructed a retail outlet in accordance with the designs and other specifications provided by RIL and executed a dealership agreement in the year 2005. Later the retail outlet was suspended with a new dealership support scheme.

Aggrieved with the suspension of operation of the retail outlet by RIL, the Informant has alleged abuse of dominant position by RIL in violation of the provisions of Section 4 of the Act. The Informant has alleged that RIL, taking advantage of its dominant position in the petroleum refining and marketing sector, has distorted competition in the domestic market by exporting refined petroleum at international prices (which is higher than the prices prevalent in the domestic market).

The commission observed that the relevant market in the present case is the market for ‘retail sale of petroleum products in India’. It was further observed that though RIL is the largest player in the private sector but holds only 27.9 % market share in terms of installed refining capacity in India, and hence RIL is not a dominant enterprise in the relevant market. Thus, there exists no case against RIL for violation of Section 4 of the Act.

(Source: CCI Order dated November 17, 2015.For full text see CCI website)