COMPETITION COMMISSION OF INDIA (CCI) has ordered Investigation on a complaint filed by M/s Financial Software and System Private Limited (FSS, Informant) against M/s ACI Worldwide Solutions Private Limited, India, M/s ACI Worldwide Incorporated, USA and M/s ACI Worldwide (Asia) Pte. Limited, Singapore (ACI, Respondents) on the Allegations of contravention of Provisions of section 3 and 4(1) of the Competition Act, 2002.
BRIEF FACTS OF THE CASE
- The Informant is a Private Limited Company incorporated in India. It is stated to act as a system integrator to bank and other Financial Institution. ACI is stated to be engaged in the business of developing software (BASE24) for electronic payment solutions which enables card-based payment transactions for banks.
- FSS and ACI are stated to have a long standing relationship, starting from acting as a re-seller for ACI for BASE24 India in 1991, then FSS becoming a distributor and service provider for BASE24 in India in 1998 through various agreements.
- The FSS has alleged that ACI took the position that it would not allow FSS to continue to provide system integration in respect of the BASE24 software.
ALLEGATIONS
The Informant has alleged that ACI has contravened provisions of section 3 and 4(1) of the Competition Act, 2002 abusing their dominance by -
The Informant has alleged that ACI has contravened provisions of section 3 and 4(1) of the Competition Act, 2002 abusing their dominance by -
- Not allowing ACI banks to choose a service provider of their choice.
- Imposing unfair condition in the purchase or sale of goods or services through exclusive supply arrangements with ACI Banks.
- Restricting the ACI Banks, not to avail the integration services of FSS.
- Limiting technical or scientific development in the market.
CONCLUSION
After initial examination CCI has observed that prima facie the conduct of the respondents amount to 'tie in arrangement' and 'refusal to deal'. Such Agreement are also likely to have appreciable adverse effect on competition looking at the market share and market size of the enterprise in question.
After initial examination CCI has observed that prima facie the conduct of the respondents amount to 'tie in arrangement' and 'refusal to deal'. Such Agreement are also likely to have appreciable adverse effect on competition looking at the market share and market size of the enterprise in question.
CCI will complete the Investigation within 60 days.
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