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CS Executive · Economic, Commercial and Intellectual Property Laws · Competition Law

Kaveri Telecom, a dominant enterprise in the broadband market, sells its services only to customers who also agree to buy an unrelated cold-storage service that has no connection by nature or commercial usage with broadband. Which clause of section 4(2) of the Competition Act, 2002 does this conduct most directly fall under?

It falls under making a contract conditional on supplementary obligations unconnected with its subject, which is section 4(2)(d). Forcing buyers of broadband to also take an unrelated cold-storage service is such a supplementary obligation and is an abuse of dominant position.

  1. AImposing a predatory price
  2. BLimiting production of services
  3. CMaking contracts subject to supplementary obligations unconnected with the subject of the contractCorrect
  4. DDenying technical development to consumers

Explanation

Section 4(2)(d) treats as abuse the making of contracts subject to acceptance of supplementary obligations which, by nature or commercial usage, have no connection with the subject of the contract. This is tying of an unrelated product. Predatory pricing concerns below-cost sales, which is not described here.

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