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Sep, 08 2018

CCI dismisses complaint against Cadbury Chocolates Maker Mondelez India

The complainant alleged unfair business practices by confectionery giant Mondelez India Foods with regard to termination of a distribution agreement.

Competition Commission of India (CCI) has rejected a complained filed against Cadbury Chocolates Maker Mondelez India. The complainant alleged unfair business practices by confectionery giant Mondelez India Foods with regard to termination of a distribution agreement.

The fair trade regulator has dismissed the case after observing that no contravention of either Section 3 or Section 4 of the (Competition) Act is made out against Mondelez. Section 3 pertains to anti-competitive agreements and Section 4 deals with abuse of dominant market position. 

The complaint was filed by a Maharashtra-based erstwhile stockist and distributor of products of Mondelez. The complainant contended that after it had raised the issues of abuse of dominance and anti-competitive practices by the confectionery giant, Mondelez terminated the distribution agreement between the two entities on frivolous and false grounds.

The regulator said, "Regarding the other allegations such as resale price maintenance by Mondelez (Opposite Party) and restriction on distributors to come up with their own discount schemes, there has been no supporting evidence or communication by the complainant to substantiate them."

"Further, resale price maintenance is not a per se violation of the provisions of the Act and there is nothing to suggest that the conduct of the OP (Opposite Party) has an appreciable adverse effect on competition in the market. Therefore, no prima facie case of violation of the provisions of Section 3 of the Act is made out on this count also," CCI further added.

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