034 IN THE SUPREME COURT OF BOHEMIA, AT _________.
Appeal No. _______/2016 (Under §53T of the Competition At! 2002" _______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______ #ohemian $a%addi &ea'e
...Appellant No. 1
$a%addi )ederation of #ohemia
...Appellant No. 2
*.
&mino+ ,port+
...-e+pondent No. 1
,port+
...-e+pondent No. 2
_______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______ Cl%%ed ith Appeal No.______/2016 (Under §53T of the Competition At! 2002" _______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______ #ooT%e
...Appellant
*.
&mino+ ,port+
...-e+pondent No. 1
_______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______
Cl%%ed ith Appeal No._____/2016
(Under §53T of the Competition At! 2002" _______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______ -odida+
...Appellant
*. #ohemian $a%addi &ea'e
...-e+pondent No. 1
Co'ar
...-e+pondent No. 2
_______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______ Cl%%ed ith Appeal No._______/2016 No._______/2016 (Under §53T of the Competition At! 2002" _______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______ ,port+
...Appellant
*.
#ohemian $a%addi &ea'e
...-e+pondent No. 1
$a%addi )ederation of #ohemia
...-e+pondent No. 2
_______________________ __________________________________ _______________________ _______________________ _______________________ __________________ ______
emorandm filed on %ehalf of #ohemian $a%addi &ea'e! $a%addi )ederation of #ohemia! #ooT%e! #ooT%e! Co'ar. Con+el appearin' on %ehalf of #ohemian $a%addi &ea'e! $a%addi )ederation of #ohemia! #ooT%e! #ooT%e! Co'ar.
TABLE OF CONTENTS N ) AUT-T,.............................................................................................................* &,T ) A##-ATN,............................................. .................................................................... .............................................. .........................................7 ..................7 ,TATNT ) 8U-,CTN..................................................................................................7ii ,TATNT ) )ACT,.............................................................................................................7iii ,,U, )- C CN,-ATN............................................ .................................................................... .......................................................7*i ...............................7*i ,UA-9 ) A-:UNT, ....................................................................................................7*ii -TTN ,U#,,N,............................................. .................................................................... .............................................. .......................................... ................... 1 .
#$& A, NT &AT §4 ) T C;TTN ACT! 2002 T - ,;CT ,;CT T T
C&U, #-ACA,TN: A:-NT ..............................................................................1 A.
#$& , NT NANT N T - &ANT &ANT A-$T.............................................1
#.
A LTERNATIVELY LTERNATIVELY , #$& A, NT A#U, T, NANT ;,TN........................<
.
&UNU, A, &AT §4 ) T C;TTN ACT T - ,;CT ,;CT T T
NT-NT #-ACA,TN: - :T, :T,......................................................................................10 A.
&UNU, , A N NT-;-, A, ;- §2( §2(" ) T ACT....................................10
#.
&UNU, , N A NANT ;,TN N T - &ANT &ANT A-$T.................10
C.
T ACTN, ) &UNU, CN,TTUT A N A#U, ) NANT ;,TN
U N- §4(2" §4(2" ) T ACT...............................................................................................15 .
#$& A, NT &AT §4 ) T C;TTN ACT T - ,;CT ,;CT T T
-CAN,N: A:-NT.............................................................................................1<
;a'e = 3
A.
#$& , NT N A NANT ;,TN N T - &ANT &ANT A-$T...................1>
#.
A LTERNATIVELY LTERNATIVELY ! #$& A, NT A#U, T, NANT ;,TN N T
- &ANT ................................................................ .............................................. ..........................................22 ...................22 &ANT A-$T......................................... .
T A:-NT #TN #$& A N CU:A- , NT &AT §3 ) T
C;TTN ACT.............................................. ..................................................................... .............................................. ...........................................23 ....................23 A.
T A:-NT , NT CAU, A N:AT ;ACT N T A-$T.......24
#.
T A:-NT A, A&-ATN: ))CT, N T C;TTN..............2>
.
$)# AN #$& NT NT &AT §4 ) T C;TTN ACT.............................2? A.
$)# , NT A N NT-;-,.................................................................................30
#.
A LTERNATIVELY , $)# A N #$& A- NT NANT N T - &ANT LTERNATIVELY &ANT
A-$T@@........................................ @@............................................................... .............................................. .............................................. ..............................30 .......30 C.
A LTERNATIVELY LTERNATIVELY ! N ) T , A,,U TAT AT $)# AN #$& A- NANT N
T - &ANT &ANT A-$T! T9 A A NT A#U, T, NANT ;,TN...........32 .
T C;AT , C,N T ;UT T C;N,ATN C&A, U N- A A#9ANC
, A&............................................. .................................................................... .............................................. ........................................................... .................................... 33 A.
T &:,&AT NTNT ) §53N , , TAT AT A - ,T-CTN ,T-CTN N T C&A
)- C C;N,ATN! U-N: ;NNC9 ) A;;A& N T N)-N:NT C,N! A, NTN................................................................................................................34 #.
T -- ) )- C C;N,ATN U& &A T :-,, N8U,TC...............35
;-A9- .............................................. ..................................................................... .............................................. .............................................. ......................................... .................. 36
;a'e = 4
INDEX OF AUTHORITIES A. ,TATUT, 1. Competition At! 2002.................................. 2002......................................................... .............................................................pa++im ......................................pa++im 2. ,port+ ,port+ #roada+tin' #roada+tin' ,i'nal ,i'nal++ (andatorB (andatorB ,harin' ,harin' ith ith ;ra+ar ;ra+ar #harati" #harati" At! At! 200<......... 200<......... .10
#. T-AT, 1. Treat on the )ntionin' of the ropean Union...................................... Union................................................................5 ..........................5
C. NAN CA,, 1. Ar+hiBa Ar+hiBa -ail nfra+trt nfra+trtre re &imited &imited *. *. ini+trB ini+trB of of -ailaB+! -ailaB+! Ca+e No. 12/2011 12/2011 (CC"... (CC"... .2 2. Atomo%ile+ Atomo%ile+ ealer+ ealer+ A++oiation A++oiation!! athra+ *. :lo%al :lo%al Atomo Atomo%ile+ %ile+ &td! Ca+e No. 33/201 33/2011 1 (CC".................................................................................................................................24 3. #elaire ner+ ner+ A++oiatio A++oiation n *. &) &td.! &td.! Ca+e No. 1?/2010 1?/2010 (CC"....... (CC"............ .......... ............... ..................< ........< 4. #iDaB ;oddar ;oddar *. *. Coal ndia &td. Ca+e No. 5?/2013 (CC"............................................. (CC"...................................................> ......> 5. Cine ;raEa+haEla ;raEa+haEla iniB iniBo'a o'a arla ,an'ham ,an'ham A *. ind ind+tan +tan Coa Cola #e*era'e+ #e*era'e+ ;*t. &td! Ca+e No. UT; ??/ 200? and -T;F16/200? -T;F16/200? (CC".......................................... (CC".......................................... ......22 6. Con+mer nline )ondation *. Tata Tata ,EB! ,EB! Ca+e No. 02/200? (CC"................................26 (CC"................................26 <. hanraD hanraD ;illaB *. oEeB oEeB ndia! Ca+e No. <3/2011 <3/2011 (CC"........ (CC"............. .......... .......... ............... ...................31 .........31!! 33 >. delei++ delei++ Commoditie+ Commoditie+ ,er*ie+ ,er*ie+ &td + Commerial Commerial Ta7 Ta7 ffier G r+.! . .;.15?02 15?02 of 2015 (adra+ (a dra+ i'h Cort"............................................................. Cort"................................................................................................35 ...................................35 ?. T edia edia &imited *. *. ,per ,per Ca++ette+ Ca++ette+ nd+trie+ nd+trie+ &imited! &imited! Ca+e No. No. 40/2011 40/2011 (CC"...... (CC".......26 .26 10. $. adh+dhan -ao *. *. &odha ealthB Con+trtion+ Con+trtion+ G e*eloper+ ;ri*ate &imited! Ca+e No. 40/2013 (CC"............................................ (CC"................................................................... .............................................. .................................21 ..........21
;a'e = 5
11. $apoor :la++ ;*t. &td. *. ,hott :la++ ndia ;*t. &td.! Appeal Appeal No. 45/2012 (C;AT".. (C;AT".. ........................................... ................................................................... ............................................... .............................................. .............................................>! ......................>! 14 12. C ,toE 7han'e &td. *. *. N, ndia ndia &td! Ca+e No. 13/200? (CC"............................< (CC"............................< 13. ohammad Ali Ali $han *. Commi++ion Commi++ion f ealth ealth Ta7! Ta7! AA- 1??< ,C 1<65 (,C".......... (,C"....... ......34 ...34 14. National n+rane Co. &td. *+. &a7mi Narain ht! ht! 200< (4" ,CA& 36 (,C"........... (,C"....... ......34 ..34 15. ;ra+ar #harti *. #CC! 2015 ,CC n&ine el <046 <046 (elhi i'h Cort"......................... Cort"............... ...........? .? 16. ;rint+ ndia *. ,prin'er ,prin'er ndia ;*t. &td.! Ca+e No. 16/2010 (CC"...........................1! (CC"...........................1! 11! 1> 1<. ,ara%h TripathB TripathB *. :reat a+tern ner'B Corporation &td.! &td.! Ca+e No. 63/2014 (CC"...6! (CC".. .6! 21 1>. ,ham+her $ataria *. onda ,eil Car+ ndia &td. And r+.! Ca+e No. 3/2011 3/2011 (CC"....@2! (CC"... .@2! 1?! 23! 24 1?. ,onam ,harma *. Apple n.! Ca+e No. 24/2011 (CC"....................................................24 (CC"....................................................24 20. ,'anthi ,re+h $mar *. *. 8a'dee+han! (2002" (2002" 2 ,CC 420 (,C"............................ (,C"......................................34 ..........34 21. ,render ,in'h #armi *. #CC! #CC! Ca+e No. 61/2010 (CC"..................................3! (CC"..................................3! 5! 12! 13 22. Tata Tata n'ineerin' and &oomoti*e Co &td (Telo" (Telo" *. The The -e'i+trar of -e+triti*e Trade A'reement! 1?<< A- ?<3 (,C".......................................... (,C"................................................................. ..............................................23 .......................23 23. U;, ,eritie+ &imited *. National ,toE 7han'e of ndia &imited! Ca+e No. 6
. U-;AN CA,, 1. A$H Chemie # *. Commi++ion! Commi++ion! 1??1 C- F335? F335? (C8".......... (C8".............. ......... .......... .......... .............. .............20 ....20 2. Atlanti Atlanti Container Container &ine A# A# *. Commi++ion Commi++ion!! 2003 CC- F32<5 F32<5 (:eneral (:eneral Cort"...........21 Cort"...........21 3. #aEer *. *. #riti+h #riti+h #o7in' #o7in' #oard of Control! Control! I2014J I2014J C 20<4 20<4 (Keen+ (Keen+ #enh"..........32 #enh"..........32 4. BBI/Boosey and Hawkes: Interim Measures, 1987 OJ (L 28! " (C" (C" 6! 21
;a'e = 6
5. C# *. C&T C&T G ;# (TelemarE (TelemarEetin'" etin'"!! 1?>5 C- 3261 (C8"....... (C8"............ .............. .................. ..................1? .........1? 6. Centre #el'e #el'e detde+ detde+ de marhe marhe TelemarE TelemarEetin' etin' *. *. CT&! CT&! I1?>5J I1?>5J C- 3261 3261 (C"..........16 <. Commerial Commerial ,ol*ent+ ,ol*ent+ *. Commi++i Commi++ion! on! I1?<4J I1?<4J C- 223 (C"........ (C"............. .......... .......... .......... .............. ..............16 .....16 >. elimiti+ elimiti+ *. ennin'er ennin'er #ra A:! 1??1 C- F?35 (C8"........ (C8"............. .......... .......... .......... ............. ................. ............24 ...24 ?. ona *. antero! Ca+e 13/<6 (C8"........................................... (C8".................................................................. .......................................30 ................30 10. 7pedia n. *. *. AtoritL de la onrrene! Ca+e CF226/11 CF226/11 (C8"........................ (C8"................................... ...........25 25 11. :rop CanalM/-T&/:C/8 CanalM/-T&/:C/8!! Ca+e Ca+e C;/.24>3 (C"..................................... (C"..................................... 3! 12! 1? 12. ilti AEtien'e+ell+haft *. *. Commi++ion! Commi++ion! 1??1 C- F143? (:eneral (:eneral Cort"..................20 13. offmannF&a -ohe G Co. A: *. *. Commi++ion! Commi++ion! 1? (C"............................................ (C"................................................................... .............................................. ..........................................3! ...................3! 12! 13 16. 8oint ,ellin' of edia -i'ht+ of the :erman #nde+li'a! Ca+e C;/C.2/3<.214 C;/C.2/3<.214 (C". ........................................... ................................................................... ............................................... .............................................. .......................................3! ................3! 12! 13 1<. 8oint ,ellin' of edia -i'ht+ to the )A )A ;remier &ea'e! Ca+e C;/CF2/3>.1<3 (C".3! 5! 12! 13! 20! 22 1>. &ehtonen *. )LdLration -oBale #el'e de+ ,oiLtL+ de #a+EetF%all A,#& A,#& ()-#,#"! Ca+e CF1<6/?6 (C8"............................................ (C8"................................................................... .............................................. ..................................... .......................30 .........30 1?. eaFedina and aDen *. *. Commi++ion! Commi++ion! Ca+e CF51?/04 ; (C8"............................. (C8"................................32 ...32 20. N. . . Netherland+ #anden nd+trie ihelin *. *. Commi++ion! 1?>3 1?>3 C- 3461 (C8". (C8". . .22 21. Ne+orp / Telepi! Telepi! Ca+e C;/. 2><6 (C"........................ (C".................................................... ............................ 3! 11! 13 22. Nottin'ham 22. Nottin'ham #ildin' ,oietB * rodBnami rodBnami ,B+tem+! I1??3J ),- 46> (U$ Cort of Appeal+"............................................................................................................................35 Appeal+". ...........................................................................................................................35 23. Nn'e++er *. Commi++ion Commi++ion 1?>2 C- 2015 (C8"................................... (C8"............................................................2> .........................2>
;a'e = <
24. ,oiete Tehnie Tehnie iniere *. *. a+hinenda Ulm 1?66 CC- 33< (C8"............. (C8"..................... ...........2> ...2> 25. United #rand+ Co. *. Commi++ion! Commi++ion! 1?<> C- 20< (C8"......................................5! (C8"......................................5! 14! 20 26. a alra*e lra*e and $oh *. *. Union CBli+te nternationale! I1?<4J C- 1405 (C8".............. ..30 2<. oter+ oter+ and ther+ *. Al'emene -aad an anee de Nederland+e rde *an Ad*oaten I2002J C- F155< (C8".......................................... (C8"................................................................. .............................................. ..............................................? .......................?
. U.,. CA,, 1. #erEeB ;hoto ;hoto n *. *. a+tman a+tman $odaE $odaE Co! 444 444 U, 10?3 (1?>0 (1?>0"" (U,,C".......... (U,,C"................... ................22 .......22 2. #oard of Trade Trade of the CitB of Chia'o Chia'o *. *. U,! 246 246 U, 231 (U,,C".... (U,,C"......... .......... ............ ................. ............2> ..2> 3. Continental T. T... *. :T ,Bl*ania! 433 U.,. 36 (1?<<" (U,,C".......................................24 (U,,C".......................................24 4. North Amerian Amerian ,oer ,oer &ea'e &ea'e * National National )oot%all )oot%all &ea'e! &ea'e! 45? U, 10<4 10<4 (1?>2" (1?>2" (U,,C"........................................ (U,,C"............................................................... .............................................. .............................................................2! ......................................2! 3 5. U.,. ealthare ealthare *. ealth ealth ,ore! 61 U,& 25?5 (Cort (Cort of Appeal+".... Appeal+"......... .......... .......... ..............2 .........26 6 6. U.,. *. iro+oft! 253 253 ).3d ).3d 34 (Cort of Appeal+".................................. Appeal+"......................................................... ....................... ..26 <. United ,tate+ ,tate+ *. *. nternatio nternational nal ar*e+ter ar*e+ter Co. 2<4 2<4 U, 6?3 (1?2<" (1?2<" (U,,C".... (U,,C".............. ...................22 .........22
). T- C CA,, 1. Adida+ Adida+ &td. *. )oot%a )oot%all ll A++oiati A++oiation on of reland! reland! Ca+e no. 421 of 12/?/?5 12/?/?5 (,preme (,preme Cort Cort of reland".............................................. reland"..................................................................... .............................................. .............................................. ..............................2< .......2< 2. Ne+ &td. *. *. A+trali A+tralian an -'%B )oot% )oot%all all &ea'e &td.! &td.! (1??6" (1??6" 64 )C- 44< ()ederal ()ederal Cort of A+tralia".................................... A+tralia"........................................................... .............................................. .............................................. .................................2! ..........2! 12
:. #$, 1. A. -oB! C ;TTN &A N NA (2nd edn.! 2014"...................................................... 2014"...................................................... 1<
;a'e = >
2. C. 8o 8one+! ;-AT N)-CNT ) A NTT-U,T &A N U! U$ AN U,A (1???".....34 3. ). iDEman iDEman+! +! and ). TBt+h TBt+hae*er ae*er!! -TCA& A:-NT, N U C;TTN &A (2nd edn.! 2011"............................................ 2011"................................................................... ............................................................ ..................................... 2! 11! 1> 4. :. o onti! C C C;TTN &A (1+t edn.! 200<".............................................................. 200<".............................................................. ? 5. &.. &.., ,aB aBne! NC9C&;A ) ,;-T, ANA:NT AN #-ACA,TN:! ol. 1 (2011".......................... (2011"................................................. .............................................. .............................................. ........................................................ ................................. 1? 6. . illia lliam m+on! +on! T CNC N,TTUTN, ) CA;TA&, (1?>5"............................23 <. - ;o+ner! A NTT-U,T &A (2nd edn.! 2001".................................. 2001"......................................................... ....................................2? .............2? >. -. NaO NaOOi Oin ni! CNCU--NT ;-CN:, N C;TTN &A (2004"..........................34 ?. -. hi hi+h +h and and . . #aile #aileB B! C;TTN &A (>th edn.! 2015".....................................22! 2015".....................................22! 26
. T- A AUT-T, 1. Commission Notice on Agreements of Minor Importance (De Minimis)! Minimis)! 8 C 36>/0<....25 2. European Commission Commission Guie!ines on Vertica! Vertica! Restraints! Restraints! .8. 2010 (C 130" 1@@@@@......................................... 1@@@@@.................. .............................................. .............................................. ...................................25! ............25! 26! 2>! 2? 3. Guiance on Artic!e "#$ Enforcement %riorities in App!&ing Artic!e '$ EC Treat& Treat& to Ausie E*c!usionar& Conuct & Dominant Dominant +nertaings! +nertaings ! 8 200? (C 45"<@@@@.. ........................................... ................................................................... ............................................... .............................................. .................................5! ..........5! 14! 1?! 20 4. Report & t-e EC Commission in .ECD, .ECD, Competition Issues Re!ate to /port (1??6".. (1??6".. .2< 5. Report & t-e EC Commission in .ECD, .ECD, Refusa! to Dea! ! 26 (200<"..............................1< (200<"..............................1<
;a'e = ?
LIST OF ABBREVIATIONS
SR.
Abbreviatio!
EXPANSION
1.
AAC
Appreia%le Ad*er+e ffet on Competition
2.
Art.
Artile
3.
#$&
#ohemian $a%addi &ea'e
4.
CC#
Competition Commi++ion of #ohemia
5.
CC
Competition Commi++ion of ndia
6.
Co.
CompanB
<.
C;AT
Competition Appellate Tri%nal
>.
:
iretor :eneral
?.
C
ropean Commi++ion
10.
C8
ropean Cort of 8+tie
11.
U
ropean Union
12.
$)#
$a%addi federation of #ohemia
13.
$,&
$a%addi ,per &ea'e
14.
&td.
&imited
15.
&mino+
&mino+ ,port+
16.
C
r'ani+ation for onomi CoFoperation and
1<.
;*t.
e*elopment ;ri*ate
1>.
r/
read ith
1?.
,A$)
,oth A+ian $a%addi )ederation
20.
,C
,preme Cort of ndia
21.
,,N;
,mall %t ,i'nifiant G NonFTran+itorB nrea+e in
NO.
;rie
;a'e = 10
22.
T)U
TreatB on the )ntionin' of the ropean Union
23.
The At
The Competition At!2002
24.
U.,.
United ,tate+
25.
U,,C
,preme Cort of the United ,tate+
26.
G
And
2<.
P
;ara'raph
2>.
§
,etion
;a'e = 11
STATEMENT OF "URISDICTION
I.
CIVIL APPEAL NO._____ OF #$%&
The Appellant+! #ohemian $a%addi &ea'e and $a%addi )ederation of #ohemia ha*e approahed thi+ onora%le Cort nder §53T of the Competition At! 2002.
II.
CIVIL APPEAL NO.____ OF #$%'
The Appellant! #ooT%e #ooT%e ha+ approahed thi+ onora%le Cort nder §53T of the Competition At! 2002.
III.
CIVIL APPEAL NO.____ OF #$%&
The Appellant ha+ approahed thi+ onora%le Cort nder §53T of the Competition At! 2002. The -e+pondent+! #ohemian $a%addi &ea'e and Co'ar! hm%lB +%mit+ to the Dri+dition of thi+ onora%le Cort.
IV.
CIVIL APPEAL NO.____ OF #$%&
The Appellant ha+ approahed thi+ onora%le Cort nder §53T of the Competition At! 2002. The -e+pondent+! #ohemian $a%addi $a%addi &ea'e and $a%addi )ederation of #ohemia! hm%lB +%mit+ to the Dri+dition of thi+ onora%le Cort.
;a'e = 12
;a'e = 13
STATEMENT OF FACTS
THE PLA(ER C CONTRACTS
$)# i+ a re'i+tered +oietB and the National )ederation for $a%addi in #ohemia! affiliated to ,A$). t i+ the ape7 %odB of +tate a++oiation+ that Ea%addi plaBer+ are affiliated to! and +elet+ plaBer+ for the national team. $)# and ,A$) annoned the lanh of #$&! a profe++ional Ea%addi lea'e in A'+t A'+t 2015. ,port+ i+ a +port+ hannel and promoter for $,&! a pri*ate profe++ional Ea%addi lea'e. $,& $,&+ fir+t +ea+on in No*em%er 2014 a+ a on+idera%le +e++. t+ +eond +ea+on a+ held in No*em%er 2015 and a+ not a %i' +e++. n ,eptem%er 2015! $)# p%li+hed a li+t of +antioned and n+antioned e*ent+! appro*ed %B ,A$). $,& a+ not a +antioned e*ent. Under ne a'reement+ +i'ned %eteen $)#+ mem%er a++oiation+ and the plaBer+! di+iplinarB ation old %e taEen a'ain+t plaBer+ partiipatin' in n+antioned e*ent+ and failin' to attend ompl+orB national national amp+. A ompl+orB national amp for +eletion in the team for the A+ian $a%addi Champion+hip a+ to %e held date+ that la+hed ith the +eond +ea+on of $,&. ,ome national plaBer+ and Dnior plaBer+ terminated their ontrat ith $,& after the annonement of the re'lation+. ,port+ filed an information alle'in' a%+e of dominane. The :+ report reorded $)# a+ dominant in the marEet for ondtin' and 'o*ernin' national and international Ea%addi in #ohemia! and that #$& had a%+ed it+ dominant po+ition.
;a'e = 14
CC# direted $)# and #$& to ea+e and de+i+t from ontinin' ith re+triti*e la+e+ and ordered the di+inte'ration di+inte 'ration of $)# and #$& to a*oid onflit of intere+t. C;A C;AT rled that the latter order a+ e7e++i*e and narranted and +et it a+ide. THE BROADCASTIN) A)REEMENT
&mino+ ,port+ a+ aarded the e7l+i*e international! a+ ell a+ #ohemian %roada+tin' ri'ht+ of #$& mathe+. #$& re+er*ed the ri'ht to nilaterallB alter the a'reement to promote Ea%addi or in frtherane of p%li intere+t. Another %idder! edia #ohemia filed a peti tion +tatin' that it +hold %e 'ranted the %roada+tin' ri'ht+ a+ it i+ the national %roada+ter and a freeFtoFair hannel. #$& aarded the %roada+tin' ri'ht+ for telea+t in #ohemia to edia #ohemia for a on+ideration amont one third of the amont paid %B &mino+. &mino+ ,port+ filed an nformation alle'in' a%+e of dominane. The : fond #$& 'iltB of a%+e of dominane %B impo+in' nfair ondition+. The CC# pheld the f indin' and ordered a time la' of 15 minte+ in edia #ohemia+ +treamin'. C;A C;AT too pheld CC#+ order in thi+ re'ard. THE INTERNET BROADCASTIN) R I)HTS I)HTS
#ooT%e! #ooT%e! an online *ideo +treamin' + treamin' e%+ite! approahed &mino+ for internet %roada+tin' ri'ht+ of #$& mathe+! +ine &mino+ hold+ the ri'ht to frther lien+e the media ri'ht+ to anBone on anB medim. &mino++ aeptane a+ +%Det to term+ inldin' paBment of a nonFrefnda%le +eritB %B #ooT%e! paBment of 40Q re*ene proeed+! telea+t ith a time la' of 15 minte+ and &mino++ ri'ht to aard internet %roada+t ri'ht+ to another operator. #ooT%e #ooT%e ref+ed to aept. &mino+ then ad*erti+ed that #$& mathe+ old %e telea+t on it+ online platform and mo%ile appliation! free of har'e! and ith a la' of 5 minte+ from the T %roada+t.
;a'e = 15
#ooT%e filed an nformation a'ain+t &mino+ for a%+e of dominane in the marEet for %roada+t of #$& mathe+. mathe+. The : did not find &mino+ &mino+ dominant. CC# pheld :+ findin'+ in the matter. C;AT di+mi++ed #ooT%e+ appeal on the 'rond+ of &mino+ not %ein' dominant in the marEet for %roada+tin' +port+. THE MERCHANDISIN) A)REEMENT
Co'ar! an international manfatrer of TF+hirt+ TF+hirt+ and ap+! and the international +pon+or of ,A$)! a+ aarded the e7l+i*e merhandi+in' ri'ht+ for all franhi+ee+ for the openin' +ea+on. The merhandi+in' a'reement ontained an atomati reneal la+e for one Bear at a premim paBment of 20Q o*er the rrent prie. -odida+! a #ohemian manfatrer of TF+hirt+ TF+hirt+ and ap+! filed an information alle'in' all e'in' an e7l+i*e +pplB a'reement %eteen #$& and Co'ar. Co'ar. rin' in*e+ti'ation! it a+ fond f ond that one of the franhi+ee+ had prote+ted a'ain+t #$&+ #$&+ ri'ht to aard merhandi+in' ri'ht+ and the atoFreneal la+e. Al+o! the )ranhi+ee A'reement entitled #$& to e7pel anB franhi+ee on 'rond+ of mi+ondt and at+ a'ain+t fairplaB. The CC# direted #$& to eliminate the atoFreneal la+e and held the e7i+tin' ontrat to %e in *iolation of §3 and 4 of of the At. oe*er! oe*er! the C;A C;AT rled that the proFompetiti*e effet+ of the e7l+i*e merhandi+in' ontrat otei'hed the antiFompetiti*e effet+. THE COMPENSATION CLAIM
n %ehalf of $,&! ,port+ filed an appliation nder §53N of the At laimin' ompen+ation. The C;AT C;AT pt the appliation nder a%eBane a%e Bane till the aforementioned
;a'e = 16
appeal+ are deided. ,port+ ontended that the ondition+ nder the +etion ere met and appealed a'ain+t the C;AT+ dei+ion. All the a%o*e appeal+ are no %efore the ,preme Cort of #ohemia.
;a'e = 1<
ISSUES FOR C CONSIDERATION APPEAL I
1. hether hether #$& ha+ ha+ *iolated *iolated §4 of the At ith ith re+pet to the the 7l+i*e 7l+i*e #roada+tin #roada+tin' ' A'reement %eteen #$& and &mino+ ,port+. 2. hether hether $)# and and #$& ha*e *iolated *iolated §4 §4 of the At ith ith re+pet re+pet to the plaBer plaBer ontrat+.
APPEAL II
1. hether hether &mino+ &mino+ ha+ ha+ *iolated *iolated §4 of the the At At ith re+pet re+pet to the the nternet nternet #roada+tin' -i'ht+.
APPEAL III
1. hether hether #$& ha+ *iolated *iolated §4 of the At ith ith re+pet re+pet to the erhan erhandi+in' di+in' A'reement %eteen #$& and Co'ar. 2. hether hether the a'reement a'reement %eteen %eteen #$& #$& and and Co'ar Co'ar *iolated *iolated §3 of of the At. At.
APPEAL IV
1. hether hether the C;A C;AT+ dei+ion dei+ion to pt pt the ompen+ation ompen+ation laim+ laim+ nder a%eBane a%eBane i+ *alid.
;a'e = 1>
SUMMAR( OF AR)UMENTS I.
B*L HAS NOT VIOLATED + OF THE COMPETITION ACT -ITH RESPECT TO THE EXCLUSIVE BROADCASTIN) A)REEMENT BET-EEN B*L AND LUMINOUS SPORTS.
§4 of the At prohi%it an enterpri+e from a%+in' it+ dominant po+ition in the rele*ant marEet. $a%addi! %ein' a +port ith lo poplaritB and p%li intere+t! doe+nt ha*e a +tron' fan folloin'. t an %e +%+titted ith other +port+ %B the on+mer+. Therefore! the rele*ant marEet i+ the marEet for the %roada+tin' ri'ht+ of the +portin' e*ent+. #$& i+ not not dominant in the rele*ant marEet %ea+e %ea+e it an neither operate independentlB of the ompetiti*e fore+ pre*ailin' in the rele*ant marEet! nor affet ompetitor+! on+mer+ or the rele*ant marEet in it+ fa*or. n anB e*ent! e*en if #$& i+ a++med to %e dominant in the marEet! it ha+ not a%+ed it+ po+ition. Thi+ i+ %ea+e #$& ha+ not impo+ed anB nfair and di+riminatorB ondition+ on &mino+. A!ternatie!& &mino+. A!ternatie!&!! e*en if #$& ha+ impo+ed nfair ondition+! it i+ +till not lia%le for the *iolation+ of pro*i+ion+ of §4 of the At. Thi+ i+ %ea+e the ation+ of #$& ere in frtherane of p%li intere+t. II.
LUMINOUS HAS VIOLATED + OF THE COMPETITION ACT -ITH RESPECT TO THE INTERNET BROADCASTIN) RI)HTS.
§4 of the At prohi%it+ an enterpri+e from a%+in' it+ dominant po+ition in the rele*ant marEet. &mino+ i+ a firm en'a'ed in eonomi ati*itB! th+ i+ an enterpri+e. n the in+tant a+e! the marEet for the tele*i+ion %roada+tin' of pri*ate profe++ional Ea%addi lea'e+ and marEet for the internet %roada+tin' of pri*ate profe++ional Ea%addi lea'e+ are to different rele*ant marEet+. Thi+ i+ %ea+e the+e to prodt+ are not +%+titta%le de to the e7i+tene of fator+ +h a+ +peiali+ed proder+! hi'h +ithin' o+t. &mino+ i+ dominant in the
;a'e = 1?
marEet for tele*i+ion %roada+tin' of the pri*ate profe++ional Ea%addi lea'e+ %ea+e of it+ a%ilitB to operate independentlB of the ompetiti*e marEet fore+ and affet the marEet! ompetitor+ in it+ fa*or. &mino+ ha+ a%+ed it+ po+ition %B le*era'in' it+ po+ition in the tele*i+ion %roada+tin' marEet to %enefit it+ on platform &mino+.om in the internet %roada+tin' marEet. III.
B*L HAS NOT VIOLATED + OF THE COMPETITION ACT -ITH R ESPECT ESPECT TO THE MERCHANDISIN) A)REEMENT
§4(1" of the At +tate+ that no enterpri+e or 'rop +hall a%+e it+ dominant po+ition. All prodt+ that are +%+titta%le from a on+mer+ point of *ie are part of the +ame marEet. The rele*ant prodt i+ the marEet for merhandi+in' ri'ht+ for #$& mathe+ and the on+mer+ are the merhandi+e manfatrer+. )or the+e manfatrer+! prodin' +port+ merhandi+e i+ not +%+titta%le ith prodin' other merhandi+e de to the +peial reirement+. The rele*ant marEet in thi+ a+e i+ the marEet for ri'ht+ of +port+ merhandi+e. #$& i+ not dominant in the rele*ant marEet %ea+e it doe+ not ha*e a maDoritB +hare and i+ not a%le to operate independentlB of ompetiti*e fore+. AdditionallB! Con+mer+ Con+mer+ ha*e onter*ailin' %Bin' poer and #$& annot affet the marEet! on+mer+ or ompetitor+. *en if it i+ a++med that #$& i+ in a dominant po+ition in a narroer marEet! it ha+ not a%+ed thi+ po+ition. Thi+ i+ %ea+e the e7l+i*e ontrat and atoFreneal la+e are for a +hort dration and thi+ doe+ not denB marEet ae++ to ompetitor+ or on+mer+. Therefore it i+ +%mitted that #$& ha+ not *iolated §4 of the At. IV. IV.
THE A)REEMENT BET-EEN B*L AND COU)AR D DOES NOT VIOLATES + OF THE COMPETITION ACT
;a'e = 20
A'reement+ ithin the pr*ie of §3(4" of the At old %e in ontra*ention of 3(1" onlB if theB are liEelB to a+e AAC. The marEet +hare of the +eller in the rele*ant marEet i+ detrimental in deidin' hether there i+ AAC in the marEet de to the e7l+i*e +pplB a'reement. n thi+ a+e! #$& and Co'ar do not ha*e a maDoritB +hare in the rele*ant marEet. TheB do not ha*e eno'h eonomi poer to reate entrB %arrier+ or dri*e ompetition ot of the marEet and reate +%+tantial forelo+re. The e7l+i*e +pplB a'reement and the atoF reneal la+e ere for a +hort dration. A +peified and +hort dration of the a'reement doe+ not a+e entrB %arrier+ and doe+ not dri*e ompetition ot of the marEet! or forelo+e the marEet for ne entrant+. Therefore there are no ne'ati*e effet+. AdditionallB there are po+iti*e effet+ of e7l+i*e ontrat+ and atoFreneal la+e+ liEe! eonomie+ of +ale in the marEet! lon' term in*e+tment+ %B proder+! +oltion to the free rider pro%lem et. Therefore the a'reement doe+ not a+e AAC in the marEet! and i+ not *oid nder §3 of the At. V .
*FB AND B*L HAVE NOT VIOLATED + OF THE COMPETITION ACT -ITH RESPECT TO PLA(ER CONTRACTS PLA(ER CONTRACTS
§ 4(1" of the At +tate+ that no enterpri+e or 'rop +hall a%+e it+ dominant po+ition. $)# i+ not an enterpri+e a+ $)#+ ati*itie+ are of prelB +portin' intere+t and do not on+titte an eonomi ati*itB. Alternati*elB! Alternati*elB! if $)# i+ an enterpri+e! $)# and #$& are not dominant in the rele*ant marEet. The rele*ant marEet i+ determined %B +%+titta%ilitB. $a%addi i+ +%+titta%le %B other +port+ for the *ieer+! hene the rele*ant marEet i+ not re+trited to Ea%addi. $)# annot affet ompetition in thi+ rele*ant marEet! $)# and #$& on+titte onlB a +mall +hare. Th+ $)# and #$& are not dominant in the rele*ant marEet. n anB e*ent! e*en if $)# and #$& are dominant! there i+ no a%+e of dominane. $)#+ re'lation+ ere not di+proportionate to the o%Deti*e+ +o'ht to %e ahie*ed! therefore $)# and #$& did not *iolate §4.
;a'e = 21
VI.
THE COMPAT/S ORDER T TO PUT THE COMPENSATION CLAIM UNDER A ABE(ANCE SHOULD BE UPHELD.
The order of the C;AT C;AT to pt the §53N appliation for ompen+ation nder a%eBane +hold %e pheld. Thi+ i+ %ea+e the le'i+lati*e intent of the pro*i+ion +ho+ that a re+trition on the laim for ompen+ation drin' the pendenB of the appeal on the infrin'ement dei+ion i+ intended. The order for ompen+ation +hold onlB %e pa++ed after the findin'+ of the ontra*ention %eome+ definiti*e. AdditionallB! AdditionallB! there i+ a h'e ri+E of inD+tie if the enterpri+e i+ made to paB the ompen+ation %efore the adDdiation of appeal.
;a'e = 22
-RITTEN SUBMISSIONS B*L HAS NOT VIOLATED + OF THE COMPETITION ACT, #$$# -ITH
I.
R ESPECT ESPECT TO THE EXCLUSIVE BROADCASTIN) A)REEMENT %. §4(1" of the At +tate+ that no enterpri+e or 'rop +hall a%+e it+ dominant po+ition. 1 t i+
+%mitted that the findin'+ f indin'+ of C;AT C;AT are inorret and there i+ no +h *iolation %ea+e #$& i+ not dominant in the rele*ant marEet 0A1. A!ternate!&, e*en A!ternate!&, e*en if #$& i+ dominant in the rele*ant marEet! it ha+ not a%+ed it+ dominant po+ition 0B1. A. #$& , NT NANT N T - &ANT &ANT A-$T i.
T2ee Mar3 T2 Mar3et et For For T2 T2ee Broa Broa45 45a! a!ti ti6 6 Ri6 Ri62t 2t!! O7 S8o S8ort rti i6 6 Eve Evet! t! I I Bo2e Bo2e9i 9ia a I! T2e Re:evat Mar3et.
2. The a+ertainme a+ertainment nt of the rele*ant rele*ant marEet marEet i+ e++ential e++ential for for analB+in' analB+in' a a+e of of a%+e of dominane.2 The dominant po+ition of an enterpri+e or a 'rop ithin an identified Rrele*ant marEet ha+ to %e e+ta%li+hed fir+t.3 hen determinin' hat on+titte+ the rele*ant marEet! de re'ard m+t %e 'i*en to %oth the rele*ant prodt a+ ell a+ 'eo'raphi marEet. 4
1 §4(1"! Competition At! 2002. 2 ;rint+ ndia *. ,prin'er ndia ;*t. &td.! Ca+e 16/2010! P? (CC" Ihereinafter! ;rint+ ndiaJ. 3 7planation 2! §4(2"! Competition At! 2002. 4 §1?(5"! Competition At! 2002.
;a'e = 1
3. All tho+e prod prodt+ t+ or +er*ie+ +er*ie+ hih are re'arded re'arded a+ interhan' interhan'ea%le ea%le or +%+titt +%+titta%le a%le %B the on+mer form part of the +ame rele*ant prodt marEet. 5 -ele*ant prodt marEet i+ primarilB determined %B 'a'in' prodt prodt +%+titta%ilitB from a on+mer+ per+peti*e. 6 n the in+tant a+e! the rele*ant prodt i+ the %roada+tin' ri'ht+ for #$& mathe+. The %Ber+ of the prodt are the T hannel+ or %roada+ter+! liEe &mino+ ,port+! edia #ohemia and ,port+. < ere it i+ nee++arB to differentiate %eteen the p+tream marEet of +ellin' %roada+tin' ri'ht+! from the don+tream marEet of %roada+tin' #$& mathe+ to p%li.> Thi+ i+ %ea+e the on+mer+ for %oth the+e prodt+ are different and theB are not +%+titta%le.?
5 §2(t"! Competition At! 2002. 6 ). iDEman+! and ). TBt+hae*er! -TCA& A:-NT, N U C;TTN &A! 106! (2 nd edn.! 2011". < ;ropo+ition! P13! &ine 4F6. > ,ham+her $ataria *. onda onda ,eil Car+ ndia ndia &td. And r+.! Ca+e No. 3/2011! P1?.4 (CC" Ihereinafter! $atariaJ. ? $ataria! supra $ataria! supra note >! P1?.4.
;a'e = 2
4. The prodt+ prodt+!! to %e a part part of the +ame +ame marEet! marEet! need not not %e perfet perfet +%+titte+ +%+titte+..10 n Nort n Nort American /occer League""and Ne0s and Ne0s Limite "$ the i++e %efore the ort a+ hether %roada+tin' of e*erB +port i+ a di+tint marEet or a part of a lar'er marEet. t a+ held that a %road marEet! inldin' different +portin' lea'e+! +hold +hold %e identified a+ the rele*ant marEet. Thi+ i+ %ea+e *ario+ +portin' %odie+ ompete ith eah other for attendane at 'ame+! +pon+or+hip moneB! tele*i+ion ae++ et. The mere fat that a Rore rod of +ome +port+ lea'e old ne*er find another +%+titte for the lea'e! did not mean that no other +port a+ in fat +%+titta%le for that +port+ lea'e. lea'e.13 ,imilarlB! in the in+tant a+e! %roada+tin' of Ea%addi lea'e+ annot %e identified a+ a di+tint marEet.
5. AdmittedlB! ompetition ompetition athoritie+ 'lo%allB! ha*e identified +eparate marEet+ for the
%roada+tin' ri'ht+ of different +port+ +h a+ riEet!14 foot%all!15 et. oe*er! theB ha*e 10 Ar+hiBa Ar+hiBa -ail nfra+trtre nfra +trtre &imited *. ini+trB of -ailaB+! Ca+e No. 12/2011! 12/2011! P14.12"! P> (U,,C" Ihereinafter! NA,&J. 12 Ne+ &td. *. A+tralian A+tralian -'%B )oot%all &ea'e &td.! (1??6" 64 )C- 44. 14 ,render ,in'h #armi *. #CC! Ca+e No. 61/2010! P>.3> (CC" Ihereinafter! #CCJ. 15 :rop CanalM/-T CanalM/ -T&/:C/8 &/:C/8!! Ca+e C;/.24>3! P12 (C" Ihereinafter! CanalJS 8oint ,ellin' of edia -i'ht+ to the )A ;remier &ea'e! Ca+e C;/CF2/3>.1<3! P22 (C" Ihereinafter )A;&JS 8oint ,ellin' of Commerial -i'ht+ of U)A Champion+ &ea'e! Ca+e C; C.2F 3<.3?>! P63 (C" Ihereinafter! U)AJS U)AJS 8oint ,ellin' of edia -i'ht+ of the
;a'e = 3
done +o %ea+e tBpiallB! tBpiall B! tho+e +port+ an regu!ar!& attract -ig- auience numers, specific auiences or proie a certain ran image! image ! hih annot %e ahie*ed %B mean+ of other ontent.16 The+e +port+ are identified a+ the maDor +portin' e*ent+ in the+e ontrie+ de to their +%+tantial adiene +iOe. +iOe.1< )rther! the ompetition athoritie+ did not ome to anB onl+ion hether the re+t of the +port+ indi*idallB on+titte +eparate marEet+ or not. 1> CC identified the different rele*ant marEet+ a+ marEet for e7l+i*e ri'ht+ of the international foot%all e*ent+ that taEe plae e*erB Bear and marEet for the ri'ht+ of other +portin' e*ent+.1? The marEet for the other minor +port+ a+ not frther di*ided.
6. ,imilarlB ,imilarlB!! in the the in+tant in+tant a+e! Ea%addi Ea%addi a+ a+ not a maDor maDor +port +port in #ohemia. #ohemia.20 $a%addi ha+ +een lo partiipation from the Both. 21 )rther! the 'eneral p%li al+o ha+ little intere+t in Ea%addi.22 The #ohemian 'o*ernment floated inenti*e +heme+ to enora'e the partiipation of the Both and to in*i'orate in*i'orate the intere+t of the 'eneral p%li. 23 The
:erman #nde+li'a! Ca+e C;/C.2/3<.214! P41 (C" Ihereinafter #nde+li'aJ. 16 U)A! supra U)A! supra note 15! P63. 1< )A;&! supra )A;&! supra note note 15! P22. 1> Ne+orp / Telepi! Ca+e C;/. 2><6! P<1 (C" Ihereinafter! Ne+orpJ. 1? I1, 1? I1, P52. P52. 20 ;ropo+ition! P4! &ine 1F3. 21 ;ropo+ition! P4! &ine 4F5. 22 ;ropo+ition! P4! &ine 4F5. 23 ;ropo+ition! P4! &ine 4F5.
;a'e = 4
:o*ernment re*i*ed the +port+ federation for Ea%addi. 24 $a%addi annot %e ompared to )oot%all and CriEet a+ the *ieer+ dont ha*e anB +tron' preferene for Ea%addi. Con+eentlB! the %roada+ter+ ill not ha*e anB preferene for the %roada+tin' ri'ht+ of Ea%addi a+ it doe+ not attrat a lar'e *ieer %a+e. Therefore! it i+ +%mitted that the Ea%addi %roada+tin' ri'ht+ an %e +%+titted for the %roada+tin' ri'ht+ for other +port+. The The rele*ant prodt marEet in the in+tant a+e +hold %e the maret for t-e roacasting roacasting rig-ts of sporting eents. eents.
<. The Rre!eant geograp-ic maret 25 +hold al+o %e taEen into on+ideration to identifB the rele*ant marEet.26 CC# +hold paB de re'ard to the fator+ +h a+ lan'a'e! 2< on+mer preferene!2> inter a!ia! a!ia! hile identifBin' the rele*ant 'eo'raphi marEet. The 'eo'raphi marEet for the ai+ition of media ri'ht+ i+ +allB defined on the %a+i+ of national or lin'i+ti riteria! and i+ therefore national in +ope. +ope.2? Thi+ i+ primarilB de to the differene+ in the re'latorB re'ime+! lan'a'e %arrier+ and other ondition+ of ompetition pre*ailin' in the different nation+.30 Th+! the 'eo'raphi 'eo'raphi rele*ant marEet +hold %e %e re+trited to #ohemia.
24 ;ropo+ition! P4! &ine 1F3. 25 §2(+"! Competition At! 2002. 26 §1?(5"! Competition At! 2002. 2< §1?(6"(f"! Competition At! 2002. 2> §1?(6"('"! Competition At!2002. 2? )A;&! supra )A;&! supra note 15! P14S #nde+lin'a! supra #nde+lin'a! supra note 15! P1?S #CC! supra #CC! supra note 14! P>.3>. 30 )A;&! supra )A;&! supra note 15! P23.
;a'e = 5
>. n onl+io onl+ion! n! it i+ +%mitted +%mitted that the the marEet marEet for for the Rroacasting rig-ts of sporting eents in 2o-emia 2o-emia i+ the rele*ant marEet. ii. ii.
B*L B* L I! Not Not Do9 Do9i ia att I I T2e T2e I4e I4eti ti7i 7ie4 e4 Re:e Re:eva vat t Mar3e ar3ett
;. A+ ha+ %een ar'ed a%o*e! the rele*ant marEet in the in+tant a+e i+ the marEet for the
Rroacasting rig-ts of sporting eents in 2o-emia . t i+ +%mitted that #$& i+ not in a dominant po+ition in thi+ marEet %ea+e first %ea+e first ! #$& doe+ not operate independentlB of the ompetiti*e fore+ pre*ailin' in the rele*ant marEet 0a1! and secon!& and secon!&!! #$& annot affet ompetitor+! on+mer+ or the rele*ant marEet in it+ fa*or 0b1. a. #$& Cannot Cannot perate perate ndependentlB ndependentlB f The Competiti* Competiti*ee )ore+ ;re*ailin' ;re*ailin' n The -ele*ant arEet.
10. t i+ an e+ta%li+hed priniple that a firm old %e a%le to %eha*e independentlB of ompetiti*e fore+! if it ha+ aired a po+ition of eonomi +tren'th. 31 Thi+ po+ition of eonomi +tren'th an %e nder+tood to %e one of +%+tantial marEet poer .32
11. n the in+tant a+e! #$& doe+nt doe+nt ha*e anB +%+tantial marEet poer in the identified rele*ant marEet. Thi+ i+ on aont of the fat that the poplaritB of Ea%addi i+ *erB lo in #ohemia
31 United #rand+ Co. *. Commi++ion! 1?<> C- 20
;a'e = 6
and the 'o*ernment ha+ %een lanhin' +heme+ for it+ re*i*al. re*i*al .33 t on+titte+ onlB a +mall part of the identified marEet! a+ a lot of other +port+ form a part of thi+ marEet. The marEet +hare of #$& in the marEet for the %roada+tin' ri'ht+ of +portin' e*ent+ i+ ne'li'i%le! de to the e7i+tene of other maDor +portin' e*ent+. Therefore! it i+ +%mitted that #$& annot operate independentlB of the ompetiti*e fore+ pre*alent in the rele*ant marEet. %. #$& Cannot Cannot Affet Affet Competitor+! Con+mer+ r The -ele*ant -ele*ant arEet n t+ )a*or
12. An enterpri+e +hold ha*e the a%ilitB to en'a'e in ondt that e7lde+ ompetition ompetition or pre*ent+ the entrB of neomer+ into the rele*ant marEet! and +hold %e a%le to inflene inflene the rele*ant marEet in it+ fa*or .34 A+ ar'ed a%o*e35! #$& hold+ a *erB +mall +hare of the marEet! on aont of the fat that the rele*ant marEet o*er+ all +port+ %roada+tin' in #ohemia. Therefore! anomalo+ %eha*ior of #$& old not ha*e anB + i'nifiant effet on the marEet or ompetitor+.
13. AdditionallB! anB antiFompetiti*e pratie+ %B #$& ill not not affet the %Ber+ a+ there are other +%+titte+ a*aila%le to the %Ber+ in the identified marEet. The %Ber+ ha*e onter*ailin' %Bin' poer %ea+e of the ompetiti*e marEet. 36
33 ;ropo+ition! P4! &ine 4F6. 34 BBI/Boosey and Hawkes: Interim Measures, 1987 OJ (L 28! ", P1> (C"
#$ereina%ter, Boosey&S §1?(4"(h"! Competition At! 2002. 35 emorandm! P11. 36 ,ara%h TripathB *. :reat a+tern ner'B Corporation &td.! Ca+e No. 63/2014! P1> (CC" Ihereinafter! TripathBJ.
;a'e = <
14. n onl+ion! it i+ +%mitted that #$& doe+ not hold a dominant po+ition po+ition in the rele*ant marEet. Therefore! #$& old old not ha*e *iolated §4 of the At. #. A LTERNATIVELY , #$& A, NT A#U, T, NANT ;,TN. LTERNATIVELY
%'. In an& eent ! e*en if the marEet identified %B CC# i+ the rele*ant marEet and #$& i+
dominant in that marEet! #$& ha+ not a%+ed thi+ dominant po+ition. Thi+ i+ %ea+e first, #$& ha+ not impo+ed anB nfair ondition+ on &mino+ 0i1. /econ!&, #$& ha+ not 'ranted anB preferential treatment to edia #ohemia 0ii1. A!ternatie!&! A!ternatie!&! e*en if it i+ a++med that #$& ha+ impo+ed nfair and di+riminatorB ondition+ on &mino+! the ation+ of #$& are proteted a+ theB are in frtherane of p%li intere+t. 0iii1. i
B*L Ha! Not Not I98 I98o o!e4 !e4 A< U7a U7air ir Co Co4iti 4itio o O O L= L=9i 9io=!. =!.
16. §4(2"(a" of the At At pro*ide+ that the indiret or diret impo+ition of nfair or di+riminatorB ondition+ in the prha+e or +ale of 'ood+ of +er*ie on+titte+ a%+e of dominant po+ition.3< The term Rnfair ha+ not %een defined in the At. At.3> t ha+ to %e e7amined either in the onte7t of nfairne++ in relation to +tomer+! or in relation to a ompetitor . ompetitor .3?
1<. Condition+ hih let the +eller maEe nilateral han'e+ in the term+ and ondition+ of the the a'reement! ithot %Ber+ on+ent! are on+idered nfair.40 oe*er! the pre+ene of
3< §4(2"(a"! Competition At! 2002. 3> C ,toE 7han'e &td. *. N, ndia &td! Ca+e No. 13/200?! P 10.<1 (CC" Ihereinafter CJ. 3? C! supra C! supra note 3>! P 10.<2. 40 #elaire ner+ A++oiation *. &) &td.! Ca+e 1?/2010! P12.>.> (CC".
;a'e = >
appropriate +afe'ard+ in effetin' the modifiation of term+ and ondition+! implie+ that the e7eri+e of +h poer old not %e one +ided and nfair. 41
1>. Cla+e ><..A of the e7l+i*e %roada+tin' a'reement %eteen &mino+ and #$& #$& 'i*e+ #$& the ri'ht to modifB anB term+ and ondition+ of the a'reement. 42 oe*er! proper +afe'ard+ are pro*ided in thi+ la+e. #$& an onlB alter the term+ in order to frther the intere+t of the +port of Ea%addi in #ohemia and/or in the frtherane of p%li intere+t. 43 #$& doe+nt ha*e the ri'ht to ar%itrarilB alter the term+. #$& 'ranted the ri'ht+ to edia #ohemia to frther the intere+t of the +port. Thi+ i+ %ea+e edia #ohemia i+ a )ree T Channel! and therefore it ha+ the ide+t reah in #ohemia and ill th+ inrea+e the *ieer+hip of the +port. TheB ha*e al+o i++ed a pre++ +tatement in thi+ re'ard. 44 Therefore! it i+ +%mitted that Cla+e ><..A of the e7l+i*e %roada+tin' a'reement i+ not an nfair ondition nder §4(2" (a" of the At. iii.
B*L Ha! Not )r )rat ate4 e4 A< A< Pre7 Pre7er ere etia tia:: Tr Treat9e eat9et t To To Me4ia Me4ia Bo2e9i Bo2e9ia. a.
1?. The At pro*ide+ that the impo+ition of di+riminatorB prie or ondition+ amont+ to an a%+e of dominant po+ition. 45 i+rimination ha+ %een nder+tood %B the CC to mean di++imilar treatment to eal tran+ation+.46 t i+ +%mitted that the ondt of #$& doe+nt on+titte di+riminatorB treatment. Thi+ i+ %ea+e the tran+ation+ %eteen #$& and 41 #iDaB ;oddar *. Coal ndia &td. Ca+e No. 5?/2013! P5< (CC". 42 ;ropo+ition! P25! &ine 6. 43 ;ropo+ition! P25! &ine
;a'e = ?
&mino+! and %eteen #$& and edia #ohemia are not eal. The ri'ht+ ha*e %een 'i*en to edia #ohemia to furt-er to furt-er t-e interest of t-e sport ! a+ it i+ the onlB )ree T Channel in #ohemia.4< )rther! there are rial differene+ in the lien+in' a'reement+. edia #ohemia doe+ not ha*e the poer to +%Fliene the ri'ht+ on anB medim. 4> t onlB ha+ the ri'ht to T %roada+tin'. Therefore! #$& ha+ not 'ranted preferential treatment to edia #ohemia. The a'reement+ are fndamentallB different.
20. n onl+ion! it i+ +%mitted that the ondt of #$& doe+ not amont to a%+e a+ per §4(2" of the At. iv. iv.
T2ee A5ti T2 A5tio o!! O7 B* B*L L Ar Are Prote Prote5t 5te4 e4 A! A! T2e< T2e< Are Are I F=rt F=rt2e 2era ra5 5ee O7 P=b: P=b:i5 i5 Itere!t.
21. t i+ an e+ta%li+hed priniple of la that anB re+trition on ompetition hih i+ nee++arB to promote or +afe'ard national p%li intere+t! maB %e alloed to +tand. 4? The defene of p%li intere+t i+ al+o a*aila%le for the *iolation+ related to a%+e of dominant po+ition.50
22. )rther! it i+ e+ta%li+hed that the at of maEin' R+portin' R+portin' e*ent+ of national importane a*aila%le on the )ree T! T! for people ho do not ha*e ;aB T +%+ription! i+ in p%li 46 $apoor :la++ ;*t. &td. *. ,hott ,hott :la++ ndia ;*t. &td.! Appeal Appeal No. 45/2012! P45 (C;AT" Ihereinafter! $apoor :la++J. 4< Clarifiation+! K30. 4> Clarifiation+! K31. 4? oter+ and ther+ *. Al'emene -aad ane de Nederland+e rde *an Ad*oaten I2002J C- F155
;a'e = 10
intere+t.51 Thi+ a+ endor+ed in the ndian onte7t ith re+pet to analo'o+ +tattorB pro*i+ion i.e The ,port+ ,port+ #roada+tin' ,i'nal+ (andatorB ,harin' ith ;ra+ar #harati" At! At! 200<.52 n the in+tant a+e! #$& ha+ 'i*en the ri'ht+ of %roada+tin' #$& mathe+ to the freeF toFair hannel! edia #ohemia in p%li intere+t. 53 Therefore! it i+ +%mitted that the ation+ of #$& +hold %e proteted %B the p%li intere+t defene.
II.
LUMINOUS HAS VIOLATED + OF THE COMPETITION ACT -ITH R ESPECT ESPECT TO THE INTERNET BROADCASTIN) R I)HTS I)HTS.
23. The §4(1" of the At At +tate+ that no enterpri+e or 'rop +hall a%+e it+ dominant po+ition. 54 t i+ +%mitted that &mino+ +hold %e made lia%le for the *iolation of §4 of the At %ea+e first, it first, it i+ an enterpri+e a+ per §2(h" of the At 0A1. /econ!&, it /econ!&, it i+ in a dominant po+ition in the rele*ant marEet 0B1. Last!&, the Last!&, the ation+ of &mino+ amont to a%+e nder §4(2" of the At 0C1.
A &UNU, , A N NT-;-, A, ;- §2( §2(" ) T ACT. 24. The prohi%ition+ mentioned mentioned nder §4 are onlB applia%le on an enterpri+e or 'rop. 'rop .55 The definition of an enterpri+e ha+ %een pro*ided in the At. 56 n the in+tant a+e! &mino+ i+ a 51 ;ra+ar #harti *. #CC! #CC! 2015 ,CC n&ine el <046! P55 (elhi i'h Cort". 52 ,port+ #roada+tin' ,i'nal+ (andatorB ,harin' ith ;ra+ar #harati" At! 200<. 53 ;ropo+ition! P14! &ine 6. 54 §4(1"! Competition At! 2002. 55 §4(1"! Competition At! 2002. 56 §2(h"! Competition At! 2002.
;a'e = 11
firm! hih i+ en'a'ed in the ati*itB relatin' to T %roada+tin' +er*ie+. 5< Therefore! it i+ +%mitted that &mino+ i+ an enterpri+e and th+ §4 of the At i+ applia%le to it. C. &UNU, , N A NANT ;,TN N T - &ANT &ANT A-$T. i
Mar3et For T2e Te:evi!io Broa45a!ti6 O7 Private Pro7e!!ioa: *aba44i Lea6=e! I Bo2e9ia I! T2e Re:evat Mar3et.
25. The a+ertainment of the rele*ant marEet i+ e++ential for analB+in' a a+e of a%+e of dominane.5> The dominant po+ition of an enterpri+e or a 'rop ha+ to %e e+ta%li+hed in the identified rele*ant marEet.5? hen determinin' hat on+titte+ the rele*ant marEet! de re'ard m+t %e 'i*en to %oth the rele*ant prodt a+ ell a+ 'eo'raphi marEet. 60
26. All interhan'ea%le prodt+ or +er*ie+ form part of the +ame rele*ant prodt prodt marEet.61 -ele*ant prodt marEet i+ determined %B a++e++in' prodt +%+titta%ilitB from a on+mer+ per+peti*e.62 CC# ha+ to taEe on+mer preferene+ into on+ideration for the determination of the rele*ant prodt marEet. 63
5< ;ropo+ition! P1 ;rint+ ndia! supra ndia! supra note 2! P?. 5? 7planation 2! §4(2"! Competition At! 2002. 60 §1?(5"! Competition At! 2002. 61 §2(t"! Competition At! 2002. 62 ). iDEman+! supra iDEman+! supra note 6! at 106. 63 §1?(<"("! Competition At! 2002.
;a'e = 12
2<. There are different medim+ a*aila%le for %roada+tin' +h a+ tele*i+ion! internet! mo%ile et. CC ha+ di+tin'i+hed %eteen the T %roada+tin' marEet and ne media platform+ liEe internet %roada+tin'.64 TheB identified eah of the+e a+ a +eparate marEet %ea+e of the differene+ in the harateri+ti+ of eah medim.65 There are different lo'i+tial reirement+ for eah of the+e marEet+. All the+e medim+ of %roada+tin' reire +peiali+ed +er*ie pro*ider+.66 )rther! the different medim+ of %roada+tin' are not +%+titta%le for *ieer+! a+ it in*ol*e+ +i'nifiant +hiftin' o+t. Therefore! it i+ +%mitted that the tele*i+ion %roada+tin' marEet i+ different from the internet %roada+tin' marEet.
2>. ,port+ %roada+tin' ri'ht+ on+titte on+titte a di+tint field from the %roada+tin' %roada+tin' ri'ht of other tele*i+ion pro'ramme+.6< t i+ al+o e+ta%li+hed that the marEet for +port %roada+tin' ri'ht+ o'ht to %e +%di*ided into +eparate prodt marEet+. 6>
2?. :lo%allB! ompetition athoritie+ ha*e identified +eparate marEet+ for the %roada+tin' ri'ht+ of different +port+ +h a+ riEet!6? foot%all!<0 et. The fan+ of a partilar +port old ne*er
64 Ne+orp! supra Ne+orp! supra note 1>! P2?2. 65 Ne+orp! supra Ne+orp! supra note 1>! P312. 66 U)A! supra U)A! supra note 15! P40. 6< Canal! supra Canal! supra note 15! P12. 6> Canal! supra Canal! supra note 15! P12S U)A! supra U)A! supra note 15! P63S )A;&! supra )A;&! supra note note 15! P22. 6? #CC! supra #CC! supra note 14! P>.3>. <0 Canal! supra Canal! supra note 15! P12S U)A! supra U)A! supra note 15! P63S )A;&! supra )A;&! supra note note 15! P22S #nde+li'a! supra #nde+li'a! supra note 15! P41.
;a'e = 13
find another +port +%+titta%le for that +port. <1 Th+! the %roada+tin' ri'ht+ of one +port +port are not a +%+titte for the %roada+tin' ri'ht+ for other +port+. The ompetition athoritie+ frther di*ided the marEet for the %roada+tin' of a partilar +port into to different marEet+.<2 n 2CCI n 2CCI 34! CC +tated that there are inherent differene+ %eteen international/fir+t la++ riEetin' e*ent+ and pri*ate profe++ional riEet lea'e+! +h a+ the nationalitB of the plaBer+! o%Deti*e+ of the e*ent et. Therefore! it identified a +eparate maret maret for t-e organisation of priate professiona! cricet !eagues in Inia. Inia .<4 ,imilarlB! in Ne0scorp in Ne0scorp 5Te!epiu 5Te!epiu <5! the CC identified the rele*ant marEet a+ t-e t-e maret for roacasting roacasting rig-ts of foota!! eents t-at tae p!ace eer& &ear, 0-ere nationa! nationa! teams participate. participate. n +E6A37 ! the CC held that there a+ a +eparate maret maret for t-e ac8uisition an resa!e of foota!! roacasting roacasting rig-ts of eents e ents t-at are p!a&e regu!ar!& t-roug-out eer& &ear 1
30. ,imilarlB! the international Ea%addi mathe+ al+o annot %e +%+titted for pri*ate profe++ional Ea%addi lea'e+. ene! it i+ +%mitted that marEet for the %roada+tin' of the pri*ate profe++ional Ea%addi lea'e+ +hold %e identified a+ the rele*ant prodt marEet. Therefore! it i+ +%mitted that the on+mer annot +%+titte the %roada+t of pri*ate profe++ional Ea%addi lea'e+ ith anB other +er*ie.
<1 Ne+ &td.! supra &td.! supra note 12! P152. <2 U)A! supra U)A! supra note 15! P63 <3 #CC! supra #CC! supra note 14! P>.3>. <4 #CC! supra #CC! supra note 14! P>.3>. <5 Ne+orp! supra Ne+orp! supra note 1>! P52. <6 U)A! supra U)A! supra note 15! P56.
;a'e = 14
31. 31. The The Rre!eant R re!eant geograp-ic maret << +hold al+o %e taEen into on+ideration to identifB the rele*ant marEet.<> The CC# +hold paB de re'ard to the fator+ +h a+ lan'a'e! lan'a'e !0 et.! hile identifBin' the rele*ant 'eo'raphi marEet. The 'eo'raphi marEet for the ai+ition of media ri'ht+ i+ +allB defined on the %a+i+ of national or lin'i+ti riteria! and i+ therefore national in +ope. +ope.>1 Thi+ i+ primarilB de to the differene+ in the re'latorB re'ime+! lan'a'e %arrier+ and other ondition+ of ompetition pre*ailin' in the different nation+.>2 )rther! different tender+ ha*e %een alled for the national %roada+t and the Rre+t of the orld %roada+t of #$& mathe+.>3 Therefore! it i+ +%mitted that the #ohemia +hold %e identified a+ the rele*ant 'eo'raphi marEet.
32. n onl+ion! it i+ +%mitted +%mitted that the marEet for the the Rinternet Rinternet roaca roacasting sting of priate pr iate professiona! aai aai !eagues in 2o-emia 2o-emia and marEet for the Rte!eision R te!eision roacasting of priate professiona! aai aai !eagues in 2o-emia9 are are different marEet+. )rther! the+e +hold %e the rele*ant marEet+ for the prpo+e of identifBin' a%+e nder §4(2"(e" §4(2"(e" of the At. v.
L=9i L= 9io o=! =! I! I I A Do9i Do9ia at t Po! Po!it itio io I T2e Re: Re:ev eva att Mar Mar3e 3et. t.
<< §2(+"! Competition At! 2002. <> §1?(5"! Competition At! 2002. 0 §1?(6"('"! Competition At!2002. >1 )A;&! supra )A;&! supra note 15! P23S #CC! supra #CC! supra note 14! P>.3>S U)A! U)A! supra supra note 15! P56S #nde+li'a! supra #nde+li'a! supra note 15! P41. >2 )A;&! supra )A;&! supra note 15! P23. >3 Clarifiation+! K1<.
;a'e = 15
33. A+ ha+ %een ar'ed ar'ed a%o*e! the rele*ant marEet+ marEet+ in the in+tant a+e are the marEet+ for the Rte!eision roacasting of priate professiona! aai !eagues in 2o-emia and marEet for the Rinternet Rinternet roaca roacasting sting of priate professiona! aai !eagues in 2o-emia. 2o-emia . The dominane of an enterpri+e i+ not reired in %oth the marEet+ for the prpo+e of identifBin' a%+e nder §4(2"(e" of the At.>4 t i+ +%mitted that #$& ha+ aired a dominant po+ition in the former marEet.
34. t i+ an e+ta%li+hed priniple that a firm old %e a%le to %eha*e independentlB of ompetiti*e fore+! if it ha+ aired a po+ition of eonomi +tren'th. >5 Thi+ po+ition of eonomi +tren'th an %e nder+tood to %e one of +%+tantial marEet poer .>6 oe*er! CC +tated that independene in the onte7t of dominane doe+ not mean a%+ene of anB other plaBer in a rele*ant marEet.><
35. t i+ +%mitted that &mino+ &mino+ hold+ +%+tantial marEet poer poer in the rele*ant marEet. There are onlB to Ea%addi lea'e+ in #ohemia i.e. #$& and $,&. >> #$& i+ the %i''e+t lea'e in #ohemia and i+ the onlB pri*ate lea'e +antioned %B $)#. >? Thi+ 'i*e+ national paBer+ the freedom to partiipate in #$&. ?0 Th+! #$& ill ha*e lar'er *ieer+hip %a+e t han $,&. >4 §4(2"(e"! Competition At! 2002. >5 United #rand+! supra #rand+! supra note 31! P65S offmann supra offmann supra note 31! P4. >6 nforement :idane! supra :idane! supra note note 32! P10. >< $apoor :la++! supra :la++! supra note 46! P20. >> ;ropo+ition! P. >? ;ropo+ition! P10! &ine ?. ?0 ;ropo+ition! P10! &ine 2F4.
;a'e = 16
&mino+! nder an e7l+i*e %roada+tin' a'reement! ha+ %een 'ranted the e7l+i*e %roada+tin' ri'ht+ of #$& mathe+ on tele*i+ion and the poer to +%Flien+e the media ri'ht+ of #$& mathe+ to anBone on anB a nB medim. ?1
36. The e7i+tene of entrB %arrier+ in the rele*ant marEet i+ al+o taEen into on+ideration to
a+ertain the dominane of an enterpri+e. enterpri+e.?2 n the in+tant a+e! the entrB into the rele*ant marEet i+ diffilt a+ &mino+ ha+ the e7l+i*e ri'ht+ to +%Flien+e the media ri'ht+ of #$&.?3 )rther! the introdtion of a ne lea'e in*ol*e+ hi'h apital o+t. T he appro*al of $)# i+ al+o ritial for the or'aniOation and +e++ of anB ompetin' lea'e.?4 n onl+ion! it i+ +%mitted that &mino+ i+ dominant in the rele*ant marEet.
. T ACTN, ) &UNU, CN,TTUT A N A#U, ) NANT ;,TN U N- §4(2" ) T ACT.
3<. The At At pro*ide+ that the at of +in' it+ dominant po+ition in one one rele*ant marEet to enter into! or protet! other rele*ant marEet+ on+titte+ a%+e of dominant po+ition. ?5 n the in+tant a+e! it i+ +%mitted that &mino+ ha+ a%+ed it+ dominant po+ition %B le*era'in' it+ marEet po+ition.
3>. There i+ a need to identifB the primarB and the +eondarB marEet+ to a+ertain le*era'in'.?6 The to rele*ant marEet+ in the in+tant a+e are the marEet+ for the Rte!eision Rte!eision roacasting ?1 Clarifiation+! K<. ?2 §1?(4"(h"! Competition At! 2002. ?3 Clarifiation+! K<. ?4 ;ropo+ition! P10! &ine 1F2. ?5 §4(2"(e"! Competition At! 2002.
;a'e = 1<
of priate professiona! aai !eagues in 2o-emia 2o-emia and marEet for the Rinternet R internet roacasting roacasting of priate professiona! aai !eagues in 2o-emia 2o-emia A+ pre*io+lB ar'ed! ?< &mino+ hold+ a dominant po+ition in the marEet of the tele*i+ion %roada+tin' ri'ht+ of the pri*ate profe++ional Ea%addi lea'e+ in #ohemia.
3?. Thi+ 'i*e+ &mino+ the e7l+i*e ri'ht to +%Flien+e the media ri'ht+ of #$& mathe+ to anBone on anB medim! inldin' internet. Therefore! the to identified marEet+ are interF linEed a+ the %roada+ter annot %roada+t pro'ramme+ on the internet ithot 'ettin' ae++ to the %roada+tin' ri'ht+ from &mino+. ?> The primarB marEet i.e. tele*i+ion %roada+tin'! 'i*e+ &mino+ the e7l+i*e ri'ht o*er the ra material for the +eondarB marEet i.e! internet %roada+tin' ri'ht+. t a+ e+ta%li+hed that the ref+al to +pplB the ra material! in relation to hih the enterpri+e i+ dominant! to %enefit it+ po+ition in the +eondarB marEet on+titte+ a%+e of dominant po+ition. ??
40. mpo+in' inordinatelB hi'h hi'h prie+ or naepta%le term+ and ondition+ on+titte on+trti*e ref+al to +pplB.100 n the in+tant a+e! it i+ +%mitted that &mino+ ha+ on+trti*elB ref+ed to +pplB the internet %roada+tin' ri'ht+ to #ooT%e %B har'in' nfair prie+ and impo+in' nfair ondition+. &mino+ re+er*ed the ri'ht to aard the
?6 §4(2"(e"! Competition At! 2002. ?< emorandm! P36. ?> Centre #el'e detde+ de marhe TelemarEetin' *. CT&! I1?>5J C- 3261! P13 (C". ?? Commerial ,ol*ent+ *. Commi++ion! Commi++ion! I1?<4J C- 223! P25 (C". 100 A. -oB! -o B! C;TTN &A N NA! 32< (2nd edn.! 2014"S Report 2014"S Report & t-e EC Commission in .ECD, Refusa! to Dea! ! Dea! ! 26 (200<".
;a'e = 1>
internet %roada+t ri'ht+ to anB other operator .101 )rther! &mino+ a+ alloin' #ooT%e #ooT%e to telea+t the math ith a 15 minte time la'. 102 oe*er! theB ere %roada+tin' the +ame telea+t on their on platform! &mino+.om! ith a 5 minte la'. 103 The+e term+ impo+ed %B &mino+ on #ooT%e #ooT%e ere ere naepta%le %ea+e of their eonomi on+traint+.
41. Therefore! it i+ +%mitted that &mino+ &mino+ le*era'ed it+ dominant dominant po+ition in the primarB marEet %B impo+in' nfair ondition+ on #ooT%e #ooT%e to %enefit it+ online platform &mino+.om in the +eondarB marEet. n n onl+ion! the ondt of &mino+ amont to a%+e of dominant po+ition a+ it i+ *iolati*e of §4(2"(a" and §4(2"(e" of the At.
III.
B*L HAS NOT VIOLATED + OF THE COMPETITION ACT -ITH R ESPECT ESPECT TO THE MERCHANDISIN) A)REEMENT
42. §4(1" of the At At +tate+ that no enterpri+e or 'rop +hall a%+e it+ dominant po+ition.104 t i+ +%mitted that #$& ha+ not *iolated §4 of the At. Thi+ i+ %ea+e first, %ea+e first, #$& i+ not in a dominant po+ition in the rele*ant marEet 0A1. A!ternatie!&, e*en if #$& a+ in a dominant po+ition! it had not a%+ed thi+ dominant dominant po+ition in the marEet 0B1. A #$& , NT N A NANT ;,TN N T - &ANT &ANT A-$T i
T2e Re:evat Mar3et I T2i! Ca!e I! T2e Mar3et For Ri62t! o7 S8ort! Mer52a4i!e.
101 ;ropo+ition! P1>! &ine ?. 102 ;ropo+ition! P1>! &ine <. 103 ;ropo+ition! P20! &ine 4F5. 104 §4(1"! Competition At! 2002.
;a'e = 1?
43. The a+ertainment of the rele*ant marEet i+ e++ential for analB+in' a a+e of a%+e of dominane.105 The dominant po+ition of an enterpri+e or a 'rop ha+ to %e e+ta%li+hed in the identified rele*ant marEet.106 hen determinin' hat on+titte+ the rele*ant marEet! de re'ard m+t %e 'i*en to %oth the rele*ant prodt a+ ell a+ 'eo'raphi marEet. 10< 44. All tho+e prodt+ or +er*ie+ hih are re'arded a+ interhan'ea%le or +%+titta%le %B the on+mer form part of the +ame rele*ant prodt marEet. 10> To determine the rele*ant rel e*ant prodt marEet! CC# ha+ to taEe into aont the harateri+ti+! endF+e of prodt+! the e7i+tene of +peialiOed proder+! on+mer preferene+ et. et.10? -ele*ant prodt marEet i+ primarilB determined %B 'a'in' prodt +%+titta%ilitB from a %Ber+ per+peti*e. 110 45. The rele*ant rele*ant prodt prodt in the in+tant a+e i+ Rt-e Rt-e merc-anise rig-ts for 2:L matc-es. matc-es . The %Ber+ of the prodt are manfatrer+ of merhandi+e! liEe Co'ar and -odida+. -odida+.111 ere! it i+ nee++arB to differentiate the p+tream marEet of +ellin' merhandi+e ri'ht+ from the don+tream marEet of manfatrin' merhandi+e. merhandi+e.112 Thi+ i+ %ea+e the on+mer+ for %oth the+e prodt+ are different and theB are not +%+titta%le. 113
105 ;rint+ ndia! supra ndia! supra note 2! P?. 106 7planation 2! §4(2"! Competition At! 2002. 10< §1?(5"! Competition At! 2002. 10> §2(t"! Competition At! 2002. 10? §1?(<"! Competition At! 2002. 110 ). iDEman+! supra iDEman+! supra note 6! at 106. 111 ;ropo+ition! P22. 112 $ataria! supra $ataria! supra note >! P1?.4.
;a'e = 20
46. Thi+ ha+ to %e frther narroed don %ea+e a di+tintion ha+ to %e %e made %eteen proder+ of +port+ merhandi+e and proder+ of other merhandi+e. C8 ha+ made a di+tintion %eteen +port+ %roada+tin' hannel+ and other hannel+ %a+ed on the +peifi need+ of the former.114 ,imilarlB! there are +peial reirement+ for +port merhandi+in'! liEe tehnial Enoled'e! pre+ene of a loBal fan %a+e! prie differentiation et. hih normal merhandi+e proder+ need not %e onerned a%ot. 115 4<. t i+ +%mitted that oin' oin' to the different and nie reirement+ of of +port+ merhandi+in' ri'ht+! theB are not +%+titta%le ith other merhandi+in' ri'ht+. The harateri+ti+ of the to prodt+ are different! and in the don+tream marEet! the+e prodt+ ha*e different on+mer demand+ and prodt marEet+. 116 )or manfatrer+ of +port+ merhandi+e! the demand maB %e +ea+onal! and depend+ on the fan %a+e and *ieer+hip of the +port! poplatirB of the team! et.11< oe*er there are no +h on+ideration+ in the marEet for 'eneral merhandi+in' ri'ht+. AdditionallB! AdditionallB! manfatrin' +port+ merhandi+e ha+ an e7tra ad*anta'e %ea+e of the +iOe of the demand. Therefore! it i+ +%mitted that the to prodt+ prodt+ are not +%+titta%le and ill not %e part of the +ame marEet.
113 $ataria! supra $ataria! supra note >! P1?.4. 114 Canal! supra Canal! supra note 15! P12. 115 &..,aBne! NC9C&;A ) ,;-T, ANA:NT AN #-ACA,TN:! ol. 1! 256 (2011". 116 nforement :idane! supra :idane! supra note note 32! P5 C- 3261! P20 (C8"S ri+h ,'ar *. Commi++ion Commi++ion 1??? C- F2?6?! P166 (C8" Ihereinafter! ri+h ,'arJ. 11< ,aBne! supra ,aBne! supra note 115! at 25<.
;a'e = 21
4>. The rele*ant 'eo'raphi marEet in thi+ a+e +hold %e re+trited to territorB of #ohemia. Thi+ i+ primarilB de to the differene+ in the re'latorB re'ime+ and other ondition+ of ompetition pre*ailin' in the different nation+. 11> 4?. n onl+ion! it i+ +%mitted +%mitted that the rele*ant marEet in thi+ a+e i+ the Rmaret Rmaret for rig-ts of sports merc-anise in 2o-emia 2o-emia. . vi. vi.
B*L B* L I! Not Not I I A Do9i Do9ia at t Po! Po!it itio io I T2 T2i! i! Re: Re:ev eva att Mar Mar3e 3et. t.
'$. t i+ +%mitted that #$& i+ not in a dominant po+ition in the rele*ant marEet %ea+e first !
#$& doe+ not operate independentlB of the ompetiti*e fore+ pre*ailin' in the rele*ant marEet 0a1! and secon!& and secon!&!! #$& ha+ not affeted ompetitor+! on+mer+ or the rele*ant marEet in it+ fa*or 0b1. a
#$& oe+ Not perate perate ndependen ndependentlB tlB of the Compet Competiti*e iti*e )ore+ ;re*ailin' ;re*ailin' in in the -ele*ant arEet
51. arEet +hare i+ one of the the rele*ant fator+ to %e taEen into into on+ideration hen inirin' inirin' into hether an enterpri+e enDoB+ a dominant po+ition. 11? A po+ition po+ition of eonomi e onomi +tren'th ena%le+ a firm to operate independentlB of the ompetiti*e fore+ in the rele*ant marEet. 120 arEet +hare le++ than 40Q old lead to a pre+mption that dominane i+ nliEelB! in the a%+ene of e7eptional irm+tane+.121 n the in+tant a+e! %ea+e the marEet i+ for +port+ 11> )A;&! supra )A;&! supra note 15! P23. 11? §1?(4"(a"! Competition At! 2002. 120 United #rand+! supra #rand+! supra note 31! P65. 121 nforement :idane! supra :idane! supra note 32! P14S A$H Chemie # *. Commi++ion! 1??1 C- F335?! P60 (C8"S ilti AEtien'e+ell+haft *. Commi++ion! 1??1 C- F143?! P?2 (:eneral Cort"S Atlanti Container &ine A# *. Commi++ion! Commi++ion! 2003 C- F F32<5! 32<5! P?0<
;a'e = 22
merhandi+in' ri'ht+! there are manB ompetitor+ ho on +h ri'ht+ and #$& i+ not a maDoritB +taEeholder in the marEet. The pre+ene of ri*al+ of repte mean+ that no plaBer i+ prima faie dominant.122 The manfatrer+! ho are the on+mer+ in the marEet! old not differentiate %eteen #$& and other Ea%%adi lea'e+! anB other +portin' lea'e! or dome+ti or international +port+ mathe+. Therefore! it i+ +%mitted that #$& i+ not in a po+ition to operate independentlB of the ompetiti*e marEet fore+. . #$& a+ Not Affeted Affeted Compet Competitor+! itor+! Con+m Con+mer+ er+ or the -ele*an -ele*antt arEet n t+ )a*or )a*or 52. An enterpri+e +hold ha*e the a%ilitB to en'a'e in ondt that e7lde+ ompetition ompetition or pre*ent+ the entrB of neomer+ into the rele*ant marEet! and hene i+ a%le to inflene the rele*ant marEet in it+ fa*or .123 n the in+tant a+e! a+ ar'ed a%o*e #$& hold a *erB +mall +hare of the marEet. Th+! anomalo+ %eha*ior of #$& ill not ha*e anB +i'nifiant effet on the marEet or ompetitor+. 53. AdditionallB! the %Ber+ ha*e onter*ailin' %Bin' poer %ea+e of the ompetiti*e marEet.124 Therefore #$& old not %e a%le to at a t independent of on+mer+. 125 54. All the+e fator+ help to onl+i*elB a++ert that #$& i+ not in a dominant dominant po+ition in the rele*ant marEet. Therefore! it i+ +%mitted that #$& ha+ not *iolated §4 of the At. . A LTERNATIVELY LTERNATIVELY ! #$& A, N T A#U, T, NANT ;,TN N T - &ANT &ANT A-$T. (:eneral Cort". 122 $. adh+dhan -ao *. &odha &odha ealthB Con+trtion+ G e*eloper+ ;ri*ate &imited! Ca+e No. 40/2013! P4 (CC". 123 #oo+eB! supra #oo+eB! supra note 34! P1>S §1?(4"(h"! Competition At! 2002. 124 TripathB! supra TripathB! supra note 36! P1>. 125 ri+h ,'ar! supra ,'ar! supra note 116! P?4! (C8".
;a'e = 23
55. In 55. In an& eent ! e*en if #$& i+ dominant in a ertain marEet! it i+ +%mitted that it ha+ not a%+ed it+ dominant po+ition and therefore not *iolated §4 of the At. )or thi+ prpo+e! the +malle+t marEet definition i+ taEen a+ the rele*ant marEet. n thi+ a+e! the rele*ant marEet i+ a++med to %e t-e t-e maret for se!!ing of merc-anising rig-ts for 2:L. 2:L . ;rima faie! it i+ not an offene in it+elf if a firm i+ in a dominant po+ition in the marEet. 126 §4(1" of the At onlB intend+ to maEe a%+e of dominant po+ition an offene and not merelB %ein' in a dominant po+ition.12< 56. t i+ +%mitted that #$& ha+ ha+ not indl'ed in anB pratie that re+lted in denial of marEet ae++ in anB manner. 8oint +ellin' of ri'ht+ for a +hort period! of le++ than fi*e Bear+ i+ not antiFompetiti*e per +e.12> A'reement+ ith reded e7tent of e7l+i*itB did not appreia%lB re+trit ompetition.12? n the in+tant a+e! the e7l+i*e ontrat a+ onlB for the fir+t +ea+on of #$&.130 AdditionallB e7l+i*e ontrat+ help in ri+E alloation! tran+ation o+t! a++et +peifiitB! and %onded rationalitB. rationalitB.131 CC adopt+ an effet %a+ed approah to antiF
126 N. . . Netherland+ #anden nd+trie ihelin *. Commi++ion! 1?>3 1?>3 C- 3461! P5< (C8"S #erEeB ;hoto n *. a+tman $odaE Co! 444 U, 10?3 (1?>0"! P2< (U,,C"S United ,tate+ *. nternational ar*e+ter Co. 2<4 U, 6?3 ( 1?2<"! P20 (U,,C". 12< U;, ,eritie+ &imited *. National ,toE 7han'e of ndia &imited! Ca+e no. 6 )A;&! supra )A;&! supra note 15! P22. 12? -. hi+h and . #aileB! C ;TTN &A! 62? (> th edn.! 2015". 130 Clarifiation+! K34. 131 . illiam+on! T CNC N,TTUTN, ) CA;TA&,! 42 (1?>5".
;a'e = 24
ompetiti*e a'reement+. A+ ar'ed in the memorandm! 132 in the in+tant a+e the e7l+i*e +pplB a'reement ith the atoFreneal la+e! i+ not antiFompetiti*e and doe+ not denB marEet ae++ to ompetitor+. 5<. &a+tlB! #$& did did not re+trit the ri'ht of the franhi+e+ to +ell the merhandi+in' ri'ht+. t entered into a on+en+al ontrat ith them for the Doint +ellin' of ri'ht+. 133 #$& did not +tifle the franhi+e+ ri'ht of ref+al. The Rforfeitre of +eritB la+e onlB +poEe a%ot at+ a'ain+t fairplaB and 'ro++ mi+ondt %B the franhi+e+. franhi+e+ .134 t a+ ne*er implied that a ref+al to enter into an a'reement ith #$& old re+lt in a fine or an e7pl+ion for the franhi+e+. 5>. Con+eentlB! Con+eentlB! it i+ +%mitted that #$& did not re+ort to pratie+ that denied marEet ae++ or a%+e it+ dominant po+ition in anB other aB to *iolate §4 of the At.
IV.
THE A)REEMENT BET-EEN B*L AND COU)AR D DOES NOT VIOLATE + OF THE COMPETITION ACT
5?. A'reement+ ithin the pr*ie of §3(4" of the At old %e in ontra*ention of 3(1" onlB if theB are liEelB liEel B to a+e AAC. AAC.135 ,h a'reement+ are not per +e ille'al and there i+ no pre+mption that theB a+e AAC. AAC. The rle of rea+on i+ applied to a++e++ +h a'reement+.136 The liEelB proFompetiti*e and antiFompetiti*e effet+ of an a'reement are to
132 emorandm! P<6. 133 ;ropo+ition! P22! &ine 5F6. 134 ;ropo+ition! P26! &ine 5F<. 135 §3(4" r/ §1?(3"! Competition At! 2002S $ataria! supra $ataria! supra note note >! P20.6.11. 136 Tata Tata n'ineerin' and &oomoti*e Co &td (Telo" *. The -e'i+trar of -e+tri ti*e Trade A'reement! 1?<< A- ?<3! P6?3 (,C".
;a'e = 25
%e e*alated on a a+e to a+e %a+i+! and onlB a net ne'ati*e impat on ompetition render+ it ille'al.13<
60. n thi+ re'ard! it i+ +%mitted that the a'reement %eteen #$& and Co'ar doe+ not a+e AAC %ea+e first %ea+e first ! the merhandi+in' a'reement doe+ not a+e a ne'ati*e impat on the marEet 0A1 and secon!&, and secon!&, the merhandi+in' a'reement ha+ amelioratin' effet+ on the ompetition in the marEet. 0B1. A T A:-NT , NT CAU, A N:AT ;ACT N T A-$T
61. The At At +peifie+ fator+ liEe reation of entrB %arrier+! dri*in' e7i+tin' ompetition ot of the marEet! and forelo+re of ompetition %B hinderin' entrB into the marEet to determine the a''ra*atin' effet+ of the a'reement. 13> t i+ +%mitted that that #$&+ #$&+ a'reement ith Co'ar doe+ not a+e AAC in the rele*ant marEet %ea+e first %ea+e first ! #$& doe+ not ha*e a maDoritB +hare in the rele*ant marEet 0i1! secon!&, the e7l+i*e +pplB a'reement a+ for one +ea+on 0ii1 and !ast!&, the atomati reneal la+e a+ for one Bear onlB. 0iii1 i
B*L B* L Doe! Doe! Not Not Hav Havee A Ma>o Ma>ori rit< t< S2 S2ar aree I T2 T2ee Re: Re:ev eva att Mar Mar3e 3et. t.
62. The marEet +hare of the +eller in the rele*ant marEet i+ detrimental in deidin' hether there i+ AAC in the marEet de to the e7l+i*e +pplB a'reement. 13? The e inimi+ dotrine! 13< $ataria! supra $ataria! supra note note >! P20.6.33S elimiti+ *. ennin'er #ra A:! 1??1 C- F?35! P13 (C8"S Continental T.. *. :T ,Bl*ania! 433 U.,. 36 (1?<<"! P11 (U,,C"S Atomo%ile+ ealer+ A++oiation! athra+ *. :lo%al Atomo%ile+ Atomo%ile+ &td! Ca+e no. 33/2011! 33/2011! P12.< (CC" Ihereinafter! Atomo%ile+J. 13> §1?(3"(a"F("! The Competition At! 2002. 13? ,onam ,harma *. Apple n.! Ca+e no. 24 of 2011! P20 (CC"S Atomo%ile+! supra note 13
;a'e = 26
pre+ri%ed %B the C8! +tate+ that here the marEet +hare held %B eah of the partie+ to the a'reement doe+ not e7eed 15Q on anB of the rele*ant marEet+ affeted %B the a'reement! there i+ no AAC.140
63. A+ ar'ed a%o*e in the memorandm! memorandm! the rele*ant marEet in thi+ a+e i+ the marEet for ri'ht+ for manfatrin' +port+ merhandi+e. 141 The marEet +hare of the %Ber on the p+tream prha+e marEet i+ important for a++e++in' the a%ilitB of the %Ber to impo+e e7l+i*e +pplB hih forelo+e+ other %Ber+ from ae++ to +pplie+.142 n the in+tant a+e! a+ ar'ed a%o*e in the memorandm! #$& i+ neither a dominant plaBer in the marEet! nor doe+ it hold a maDoritB +hare in the rele*ant marEet.143
64. The importane of the %Ber on the don+tream marEet i+ the fator hih determine+ hether a ompetition pro%lem maB ari+e. f the %Ber ha+ no marEet poer don+tream! then no appreia%le ne'ati*e effet+ for on+mer+ an %e e7peted. Ne'ati*e effet+ maB ari+e hen the marEet +hare of the %Ber on the don+tream +pplB marEet a+ ell a+ the p+tream prha+e marEet e7eed+ 30 Q. 144 t i+ +%mitted that Co'ar i+ al+o not a dominant plaBer in the rele*ant marEet. *en tho'h Co'ar Co'ar ha+ a
140 Commission Notice on Agreements of Minor Importance (De Minimis )! 8 C 36>/0
;a'e = 2<
for international Ea%addi mathe+. 145 Co'ar doe+ not ha*e a maDor +hare in the national! dome+ti or pri*ate profe++ional Ea%addi mathe+ marEet! let alone other +port+.
65. A ontrat %eteen to enterpri+e+ that are not dominant in the marEet! e*en if +h a ontrat i+ a *ertial re+traint! doe+ not a+e marEet forelo+re.146 The to partie+ do not ha*e eno'h eonomi poer to reate entrB %arrier+ or dri*e ompetition ot of the marEet. The on+mer+ ha*e eno'h onter*ailin' %Bin' poer. 14< n thi+ a+e! the forelo+re i+ not +%+tantial %ea+e Co'ar and #$& do not ha*e eno'h marEet +hare to affet marEet dBnami+. Therefore! it i+ +%mitted that the a'reement doe+ not a+e anB AAC. vii. vii.
T2ee E?5: T2 E?5:=! =!iv ivee S=88 S=88:< :< A6ree 6ree9e 9et t -a! For For O Oe e Sea Sea!o !o
66. ther than the marEet po+ition of the +pplier! the dration of the operation of a *ertial re+traint i+ an important on+ideration in determinin' the pre+ent and ftre effet+ of forelo+re on ompetition.14> f there i+ no proof of dominane of the partie+ to the a'reement! a dration e7eedin' 5 Bear+ i+ on+idered a%+oltelB antiFompetiti*e. 14? A'reement+ ith reded e7tent of e7l+i*itB did not appreia%lB re+trit ompetition. 150 145 ;ropo+ition! P22. 146 U.,. *. iro+oft! 253 ).3d 34! P202 (Cort of Appeal+"S T edia &imited *. ,per Ca++ette+ nd+trie+ &imited! Ca+e no. 40/2011! P23 (CC"S Con+mer nline )ondation *. Tata ,EB! Ca+e no. 02/200?! P45 (CC". 14< ertial ertial :ideline+! supra :ideline+! supra note 142! P1?>. 14> U.,. ealthare *. ealth ,ore! 61 U,& 25?5! 25?5! P26 (Cort of Appeal+". 14? ertial ertial :ideline+! supra :ideline+! supra note note 142! P133. 150 hi+h! supra hi+h! supra note 12?! at 62?.
;a'e = 2>
6<. n thi+ a+e #$& entered into an e7l+i*e +pplB +pplB a'reement ith Co'ar onlB for the fir+t +ea+on of #$&.151 n the a+e of Aias of Aias";$ , it a+ pointed ot that there ere manB other team+ and indi*idal+ that other +port+ear manfatrer+ old enter into +imilar a'reement+ ith. A+ the a'reement had a limited dration! other +port+ear firm+ old %id at the appropriate time for the ri'ht to +pplB. ,imilarlB! the reded e7tent of e7l+i*itB in thi+ a+e doe+ not pre*ent! re+trit or di+tort ompetition. Co'ar+ a'reement ith #$& did not pre*ent it from prodin' and marEetin' other other +port+ear. ther +pplier+ +pplier+ ere not pre*ented from enterin' the +port+ merhandi+e marEet %B *irte of the a'reement. Therefore! Therefore! there ere no entrB %arrier+ reated! no forelo+re of marEet and no di+ad*anta'e to ompetitor+ %B the aB of thi+ a'reement. ene it i+ +%mitted that! e7l+i*itB in the a'reement doe+ not a+e AAC in the marEet. viii. viii.
T2e A=to A=to9at 9ati5 i5 Ree Ree@a: @a: C:a= C:a=!e !e -a -a! For Oe (ear O:< O:<..
6>. CC ha+ held that the the atoFreneal la+e old %e antiFompetiti*e antiFompetiti*e de to it+ perpetitB. perpetitB.153 The C8 tooE a *ie that an atoFreneal la+e fr+trate+ entrB into the marEet de to the nertaintB a%ot the e7tent of the la+e. 154 oe*er! in the in+tant a+e! the atoFreneal la+e in the a'reement a+ onlB for one Bear at a premim of 20Q. 155 The %a+i premi+e on 151 Clarifiation+! K34. 152 Adida+ &td. *. )oot%all )oot%all A++oiation of reland! rel and! Ca+e No. 421 of 12/?/?5! P24 (,preme Cort of reland"S Report reland"S Report & t-e EC Commission in .ECD, .ECD, Competition Issues Re!ate to /port ! 41 (1??6" Ihereinafter! Competition ++e+ -elated to ,port+J. 153 ,rinder ,in'h #armi *. #CC (,pplementarB rder"! Ca+e No. 61/2010! P36 (CC". 154 Competition ++e+ -elated to ,port+! supra ,port+! supra note 152! at <6. 155 ;ropo+ition! P22! &ine 6F<.
;a'e = 2?
hih the atoFreneal la+e la+e a+ held to a+e AAC i+ not met. A +peified and +hort time of the atoFreneal la+e old not a+e entrB %arrier+ %ea+e after the term of one Bear! other ompetitor+ old %id for the ontrat. Thi+ doe+ not dri*e ompetition ot of the marEet! or forelo+e the marEet for ne entrant+.
6?. Therefore it an %e onlded that the a'reement doe+ not not a+e anB ad*er+e effet+ on the ompetition in the marEet. ). T A:-NT A, A&-ATN: ))CT, N T C;TTN
<0. Aordin' to the Competition At! it i+ the effet of the a'reement that i+ important! not the o%Det. The re+trition+ in the a'reement ha*e to %e a++e++ed in the onte7t of the marEet to determine their net effet on ompetition. 156 The *ertial re+traint+ in the a'reement need to %e rea+ona%le for it to ha*e a po+iti*e effet on the ompetition. 15<
<1. The At At enmerate+ *ario+ fator+ liEe %enefit+ to the the +tomer+! impro*ement in prodtion and di+tri%tion! +ientifi! tehnial and eonomi de*elopment et. to %e taEen into aont to analBOe the amelioratin' effet+ of the a'reement.15>
<2. 7l+i*itB a'reement+ ith atoFreneal la+e+ ena%le manfatrer+ manfatrer+ to maEe lon'Fterm lon'Fterm in*e+tment+ in the prodt. ,ometime+ there are lientF+peifi in*e+tment+ to %e made %B either the +pplier or the %Ber! +h a+ in +peial eipment or trainin'. The in*e+tor maB
156 Nn'e++er *. Commi++ion 1?>2 C- 2015! P>< ( C8"S ,oiete Tehnie iniere *. a+hinenda Ulm! 1?66 C- 33 §1?(3"(d"F(f"! Competition At! 2002.
;a'e = 30
not ommit the nee++arB in*e+tment+ %efore partilar +pplB arran'ement+ are fi7ed a+in' holdFp pro%lem+. 15? AtoFreneal la+e help+ i+ +ol*in' +h pro%lem+. 160
<3. t al+o help+ ith the *ertial e7ternalitB e7ternalitB pro%lem+. pro%lem+.161 hen manfatrer+ ha*e the +eritB of manfatrin' that prodt for a on+idera%le time! theB trB to ahie*e eonomie+ of +ale and thi+ rede+ the *ertial e7ternalitie+. e7ternalitie+.162 Thi+ help+ to impro*e i mpro*e prodtion and di+tri%tion of the 'ood+ a+ ell a+ promote tehnial de*elopment in the marEet. 163
<4. AdditionallB! theB help to taEle the freeFrider pro%lem. 164 TheB pre*ent other +pplier+ from %enefittin' from the in*e+tment+ of +ome +pplier. Thi+ maEe+ manfatrer+ and +pplier+ le++ +Eeptial a%ot in*e+tment+ for the impro*ement of the prodt. t al+o help+ to %ild a on+mer ima'e! here the on+mer a++oiate+ the alitB prodt+ ith that +peifi %rand or manfatrer .165
<5. n onl+ion! e7l+i*e +pplB +pplB a'reement+ ith atoFreneal la+e+ re+lt in a lot of proF ompetiti*e effet+ on the marEet. Therefore the a'reement %eteen Co'ar and #$& ha+ amelioratin' effet+ hih re+lt+ in the net impat on the a'reement %ein' po+iti*e.
15? Competition ++e+ -elated to ,port+! supra ,port+! supra note 152! at <6. 160 ertial ertial :ideline+! supra :ideline+! supra note 142! P10<(d". 161 ertial ertial :ideline+! supra :ideline+! supra note 142! P10<(f". 162 - ;o+ner! A NTT-U,T &A! 11 (2nd edn.! 2001". 163 §1?(3"(e"! (f"! Competition At! 2002. 164 ertial ertial :ideline+! supra :ideline+! supra note 142! P10<(a". 165 ertial ertial :ideline+! supra :ideline+! supra note 142! P10<(".
;a'e = 31
<6. n onl+ion! it i+ +%mitted that the a'reement doe+ not a+e AAC AAC in the marEet nder §1?(3" of the At. Therefore it i+ not in ontra*ention of §3(1" of the At! and nder §3(2"! +h an a'reement i+ not *oid.
V.
*FB AND B*L DID NOT VIOLATE + OF THE COMPETITION ACT.
<<. §4(1" of the of the At At +tate+ that no enterpri+e or 'rop +hall a%+e it+ dominant po+ition. 166 t i+ +%mitted that first that first ! $)# i+ not an enterpri+e 0A1. A!ternatie!&! A!ternatie!&! if $)# i+ an enterpri+e! $)# and #$& are not dominant in the rele*ant marEet 0B1. A!ternatie!&! A!ternatie!&! if $)# and #$& are dominant! a%+e of dominane did not taEe plae 0C1. Last!&! Last!&! CC#+ order i+ di+proportionate 0D1. A $)# , NT A N NT-;-, <>. An enterpri+e inlde+ a per+on en'a'ed en'a'ed in anB economic actiit&! actiit&! i.e. an ati*itB relatin' to the pro*i+ion of 'ood+ or +er*ie+ on the marEet! not inldin' anB ati*itB relatin' to the +o*erei'n fntion+ of the :o*ernment. 16< -le+ of prelB +portin' intere+t ha*in' nothin' to do ith eonomi ati*itB ha*e %een on+idered ot+ide the pr*ie of ompetition la. la. The+e! The+e! hoe*er! m+t m+t %e limited to their proper o%Deti*e.16?
166 §4(1"! Competition At! 2002. 16< §2(h"! Competition At! 2002. 16> &ehtonen *. )LdLration -oBale #el'e de+ ,oiLtL+ de #a+EetF%all A,#& ()-#,#"! Ca+e CF1<6/?6! P32 (C8"S ona *. antero! Ca+e 13/<6! P12 (C8". 16? alra*e and $oh 1 +nion +nion C&c!iste Internationa!e! Internationa!e! I1?<4J C- 1405! P>F? (C8".
;a'e = 32
>0. $)# i+ the National )ederation of #ohemia for $a%addi! affiliated affiliated to ,A$)! entr+ted ith the fntion of +eletin' the national team a+ ell a+ re'latorB poer+ o*er it+ +tate a++oiation+ and it+ mem%er plaBer+. plaBer+.1<0 Therefore! it i+ +%mitted that $)#+ ati*itie+ are of a prelB +portin' natre and do not relate to the pro*i+ion pro*i+ion of anB +er*ie+ on the marEet. The re'lation+ introded %B $)# are inherent in the or'ani+ation of +port in order! for in+tane! to maintain ertain %a+i international norm+! enfore antiFdopin' +tandard+! maintain a la+hF free +portin' alendar! promote talent et. >1. Therefore! it i+ +%mitted that +ine $)# i+ not en'a'ed in anB eonomi eonomi ati*itB! it i+ not not an enterpri+e and doe+ not fall ithin the am%it of the At. :. A LTERNATIVELY LTERNATIVELY , $)# A N #$& A- NT NANT N T - &ANT &ANT A-$T >2. Assuming >2. Assuming ut not conceing that $)# i+ an enterpri+e! it i+ +%mitted that $)# and #$& are not dominant in the rele*ant marEet. i
T2ee Mar T2 Mar3e 3ett De7 De7i ie4 e4 B< T2 T2ee D) D) I! I! I5 I5or orre re5t 5t A! T2e T2e Mar3 Mar3et et I! Not Not Re! Re!tr tri5 i5te te4 4 To To *aba44i
>3. hen determinin' hat on+titte+ on+titte+ the rele*ant marEet! de re'ard m+t %e had for %oth the rele*ant prodt a+ ell a+ 'eo'raphi marEet. marEet .1<1 -ele*ant prodt marEet ompri+e+ of all tho+e interhan'ea%le or +%+titta%le +er*ie+. +er*ie+.1<2 hile determinin' the rele*ant prodt
1<0 ;ropo+ition! P5! &ine 6F?. 1<1 §1?(5"! Competition At! 2002. 1<2 §2(t"! Competition At! 2002.
;a'e = 33
marEet! de re'ard m+t %e 'i*en to on+mer preferene+. 1<3 n the a+e of ondtin' or 'o*ernin' +port+ the *ieer+ or the fan+ are the ltimate on+mer+. 1<4 >4. $a%addi i+ one of the +port+ hih the o9,A o9,A i+ trBin' trBin' to re*i*e and poplari+e. poplari+e .1<5 Therefore! it i+ implied that it doe+ not ha*e a folloin' and demand lar'e and +tron' eno'h for it to %e not +%+titta%le %B other +port+! or e*en other form+ of entertainment. 1<6 Con+iderin' the demand +%+titta%ilitB of Ea%addi *ieer+! it i+ +%mitted that the rele*ant marEet defined %B the : i+ narro and +hold not %e re+trited to Ea%addi e*ent+ in #ohemia. i?. i?.
*FB *FB A4 A4 B* B*L L Are Not Not Do9 Do9i ia att I I T2e T2e Re:e Re:eva vat t Mar3 Mar3et et
>5. A dominant po+ition mean+ a po+ition of +tren'th! enDoBed enDoBed %B an enterpri+e! in the rele*ant marEet! hih ena%le+ it to operate independentlB of ompetiti*e fore+ pre*ailin' in the rele*ant marEet! or affet it+ ompetitor+ or on+mer+ or the rele*ant marEet in it+ fa*or . fa*or .1<< >6. $)# i+ the National )ederation for $a%addi and onlB onlB ha+ the poer to laB don norm+! norm+! +elet the national team and ondt Ea%addi mathe+. mathe+ .1<> Therefore it annot affet ompetition in the rele*ant marEet i.e. or'ani+er+ of other +portin' e*ent+. $)# and #$&! taEen to'ether or +eparatelB! old on+titte onlB a +mall +hare of the rele*ant marEet.
1<3 §1?(<"("! Competition At! 2002. 1<4 hanraD ;illaB *. oEeB ndia! Ca+e no. <3/2011! P11> (CC". 1<5 ;ropo+ition! P4! &ine 1F3. 1<6 emorandm! P6. 1<< 7planation (a" to §4! Competition At! 2002. 1<> ;ropo+ition! P5! &ine 5F?.
;a'e = 34
><. ene! it i+ +%mitted that $)# and #$& are not dominant in the rele*ant marEet and ha*e not *iolated §4 of the At. . A LTERNATIVELY LTERNATIVELY ! N ) T , A,,U TAT $)# AN #$& A- NANT N T - &ANT &ANT A-$T! T9 A A NT A#U, T, NANT ;,TN >>. In >>. In an& eent ! e*en if $)# and #$& are in a dominant po+ition! it i+ +%mitted that there a+ no a%+e of thi+ dominant po+ition. AnB national 'o*ernin' %odB i+ free to +tiplate that it+ mem%er+ +hold omplB ith it+ rle+ and! if that i+ not aepta%le! people are free to operate independentlB. independentlB.10 f the effet+ of a pratie are inherent in the pr+it of the le'itimate o%Deti*e+ +o'ht to %e ahie*ed and proportionate proportionate to them! it ill not %e on+idered antiFompetiti*e. 1>1 )ator+ +h a+ en+rin' primaB of national repre+entati*e ompetition+! deter free ridin' on the in*e+tment+ %B national a++oiation! pre+er*in' the inte'ritB of +port! et. are the primarB o%Deti*e+ of +port+ a++oiation+. a++oiation+.1>2 >?. n the in+tant a+e! it i+ +%mitted that $)#+ re'lation+ ere not di+proportionate to the o%Deti*e+ theB +o'ht to ahie*e. The li+t of +antioned and n+antioned e*ent+ i+ nee++arB for the maintenane of a +portin' alendar. )rther! the dei+ion of +antionin' e*ent+ needed the appro*al of ,A$)! and a+ not +olelB %a+ed on $)#+ di+retion.1>3 The li+t a+ al+o nee++arB to maintain a de'ree of ontrol o*er plaBer+ a++oiated ith the re'latorB %odB 1 (Keen+ #enh". 1>0 I1 1>0 I1!! P1?S oEeB ndia! supra ndia! supra note 1<4! P10.13.6. 1>1 eaFedina and aDen *. Commi++ion! Ca+e CF51?/04 ;! P42 (C8"S oter+ supra oter+ supra note 4?! P?<. 1>2 oEeB ndia! supra ndia! supra note 1<4! P10.12.1.
;a'e = 35
and it+ mem%er a++oiation+ +ine the ondt of n+antioned e*ent+ ill not %e in aordane ith the norm+ and proedre+ pre+ri%ed %B the national federation! in thi+ a+e $)#! and the international/ontinental federation that it i+ affiliated to i.e. ,A$). ?0. Therefore! it i+ +%mitted that +ine the the effet+ of the re+trition are inherent in the le'itimate o%Deti*e+ +o'ht to %e ahie*ed! a hie*ed! $)#+ re'lation+ do not amont to a%+e of dominane.
VI.
THE COMPAT/S DECISION TO PUT THE COMPENSATION CLAIMS UNDER A ABE(ANCE IS VALID.
C;AT deided that the appliation %B ,port+ for the laim laim of ompen+ation nder §53N ;%. C;A +hold not %e deided drin' the pendenB of the appeal of the infrin'ement dei+ion .1>4 t i+ +%mitted that the dei+ion of C;A C;AT ith re'ard to the appliation nder §53N +hold %e pheld %ea+e first %ea+e first ! the le'i+lati*e intent of §53N +ho+ that a re+trition on the laim for ompen+ation! drin' pendenB of appeal on the infrin'ement dei+ion! a+ intended 0A1. /econ!&, if the order for ompen+ation i+ pa++ed! it old lead to 'ro++ inD+tie 0B1. A T &:,&AT NTNT ) §53N , , TAT AT A - ,T-CTN ,T-CTN N T C&A )- C;N,ATN! U-N: ; NNC9 ) A;;A& N T N)-N:NT C,N! A, NTN
?2. A +tatte i+ an edit of the &e'i+latre and in on+trin' a +tatte! it i+ nee++arB to +eeE the intention of it+ maEer .1>5 f a +tattorB pro*i+ion i+ open to more than one interpretation+! the
1>3 ;ropo+ition! P10! &ine 2. 1>4 ;ropo+ition! P42! &ine 3F6. 1>5 ,'anthi ,re+h $mar *. 8a'dee+han! (2002" 2 ,CC 420! P12 (,C".
;a'e = 36
Cort ha+ to hoo+e that interpretation hih repre+ent+ the tre intention of the &e'i+latre.1>6 §53N(1" pro*ide+ that an appliation an a n %e made to the C;AT C;AT for the adDdiation of a laim for ompen+ation that maB ari+e from t-e finings of t-e Commission or t-e orers of Appe!!ate Triuna! in an appea! against an& fining of t-e Commission. Commission.1>< oe*er! §53N(3" 'i*e+ the Appellate Tri%nal Tri%nal the poer+ to pa++ an order for the ompen+ation for the lo++ or dama'e a+ed a+ a re+lt of an& contraention of t-e proisions of C-apter C-apter II -aing een committe & an enterprise1 enterprise11>>
?3. The fat that the le'i+lator+ ha*e intentionallB intentionallB +ed different lan'a'e lan'a'e in the+e to pro*i+ion+ pro*i+ion+ +ho+ that theB intended different interpretation+. The lan'a'e +ed in §53N(3" +ho that the referene i+ made to the definiti*e findin'+ of ontra*ention of the pro*i+ion+ of hapter of the At. The dei+ion of the findin' of ontra*ention annot %e +aid to %e definiti*e drin' the pendenB of the appeal. 1>? n the in+tant a+e! the dei+ion of the C;AT C;AT relatin' to the *iolation+ of §4 of the At %B #$& and $)# i+ %ein' appealed in the ,preme Cort. 1?0 Therefore! it i+ +%mitted that an order nder §53N(3" annot %e pa++ed till the findin' of the ontra*ention %eome+ definiti*e.
1>6 National n+rane Co. &td. *+. &a7mi Narain ht! 200< (4" ,CA& 36! P34 (,C"S ohammad Ali $han *. Commi++ion f ealth Ta7! A- 1??< ,C 1<65! P14 (,C". 1>< §53N(1"! Competition At! 2002. 1>> §53N(3"! Competition At! 2002. 1>? -. NaOOini! C NCU--NT ;-CN:, N C;TTN &A! 16? (2004"S C. 8one+! ;-AT N)-CNT ) A NTT-U,T &A N U! U$ AN U,A! 101 (1???". 1?0 ;ropo+ition! P43! &ine 1F4.
;a'e = 3<
.
T -- ) )- C C;N,ATN U& &A T :-,, N8U,TC
?4. An order for ompen+ation +hold not not %e pa++ed here the ri+E of inD+tie de to the order %ein' pa++ed otei'h+ the ri+E of inD+tie de to the order not %ein' %ein' pa++ed. 1?1 n the in+tant a+e! if C;AT C;AT pa++e+ pa++e+ the order diretin' the enterpri+e enterpr i+e to maEe paBment pa Bment to the appliant drin' the pendenB of the appeal on the infrin'ement dei+ion! it arrie+ a 'reat ri+E of inD+tie to the enterpri+e. The fat that the infrin'ement dei+ion ha+ %een appealed +ho+ that there i+ a pro%a%ilitB that the order of the C;AT C;AT an %e o*ertrned. Th+! if the enterpri+e i+ made to paB the ompen+ation drin' the pendenB of the appeal! it i+ left ith no +tattorB remedB. remedB.1?2 The appeal proeedin'+ mi'ht taEe lon'! and e*en if the enterpri+e in+ in appeal! it ill %e a herlean ta+E to a refnd on the amont paid a+ ompen+ation. 1?3 Th+! there i+ a h'e ri+E of inD+tie if the enterpri+e i+ made to paB the ompen+ation %efore the adDdiation of appeal. Therefore! the enterpri+e +hold not not %e made to paB ompen+ation %efore the findin'+ of the *iolation+ %eome definite.
?5. n onl+ion! it i+ +%mitted that C;AT C;AT+ dei+ion to pt the ompen+ation laim+ of ,port+! nder a%eBane drin' the pendenB of the appeal! i+ *alid.
1?1 Nottin'ham 1?1 Nottin'ham #ildin' ,oietB * rodBnami rodBnami ,B+tem+! I1??3J ),- 46>! P1? (U$ Cort of Appeal+". 1?2 delei++ Commoditie+ ,er*ie+ &td + Commerial Ta7 Ta7 ffier G r+.! .;. .;.15?02 15?02 of 2015! P3 (adra+ i'h Cort". 1?3 I1 1?3 I1
;a'e = 3>
PRA(ER herefore in li'ht of the i++e+ rai+ed! ar'ment+ ad*aned and athoritie+ ited! it i+ hm%lB praBed that thi+ onora%le Cort maB %e %e plea+ed to adDd'e and delare thatV
1
#$& ha+ not not *iolated *iolated §4 of the Competition Competition At ith re+pet re+pet to the e7l+i*e e7l+i*e %roada+tin' a'reement.
2
&mino+ &mino+ ha+ ha+ *iolated *iolated §4 §4 of the Competit Competition ion At ith re+pet re+pet to the the internet internet %roada+tin' ri'ht+.
3
#$& ha+ not not *iolated *iolated §4 of the Competition Competition At ith ith re+pet re+pet to the merhand merhandi+in' i+in' a'reement.
4
The a'reemen a'reementt %eteen %eteen #$& and Co'ar Co'ar doe+ doe+ not not *iolate *iolate §3 of of the Competit Competition ion At. At.
5
#$& ha+ not not *iolated *iolated §4 of the Competition Competition At ith re+pet re+pet to the plaBer plaBer ontrat+. ontrat+.
6
C;A C;AT+ dei+ion dei+ion to to pt the the ompen+ation ompen+ation laim+ nder nder a%eBane a%eBane i+ *alid. *alid.
And pa++ anB other order that thi+ on%le Cort maB deem fit in the intere+t+ of D+tie! eitB and 'ood on+iene.
N #A&) ) #$&! $)#! # TU# A N CU:A- ! !
A034
CUN,& )- #$&! #$&! $)#! # TU# A N CU:A- .
;a'e = 3?
