CCI clears Jaypee Group of abuse amidst heavy dissent
MRTP/ Competition Laws
The Competition Commission of India in a majority ruling dismissed complaints against Jaypee Group’s alleged abuse of its dominant position. It determined that the Group was not in a dominant position in the relevant real estate market, as the market comprised small, medium and large companies, suggesting low entry to barriers. Further, buyers had a plethora of options, leaving Jaypee with an indisputably large, yet unconsolidated position so far as using its position to include unfair contract terms with buyers. In a vehement dissent, however, two members of the Commission ruled that the contractual terms, restricting buyers’ freedoms to exit the contract and access to areas surrounding their properties were severe suggesting the existence of negotiating power beyond that accepted. They noted that Jaypee Group, being several times larger than their closest competitor was clearly in a dominant position. That some of the land it owned came to be acquired pursuant to the agreement the Yamuna Expressway (connecting Delhi and Agra), did not negate its dominance in the region.
Tags : PROPERTY JAYPEE DOMINANT RESIDENTIAL ABUSE POSITION
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