The Competition Commission of India (CCI) has disposed of the case alleging unfair business practices against Nilpeter India and SaiCom Codes Flexo Print with respect to services for label printing machines. The fair trade regulator’s ruling comes even as its investigation arm director general (DG) had concluded that there were violations of competition norms.

The Competition Commission initiated a detailed probe in the case following a complaint by label printing firm Magnus Graphics, which alleged that both of the enterprises had entered into an anti-competitive agreement with each other. The complaint also alleged that Nilpeter had abused its dominant market position. The probe looked at Nilpeter’s managing director and sales manager, as well.

It was alleged that under the agreement, Nilpeter could not provide maintenance services of its printing machine to Magnus because the entity was a competitor to clients of Sai Com Codes Flexo.

According to an order on December 2, the case was disposed. “No case of contravention of the provisions of … The (Competition) Act is made out against any of the opposite parties and the matter is ordered to be closed forthwith,” said CCI.

The CCI added: “(Nilpeter) cannot be said to be in a dominant position in the relevant market even as defined by the director general and the issue of abuse of dominant position does not arise.”

The Commission also disposed of the allegation with relation to anti-competitive agreement between Nilpeter and SaiCom Codes. It noted that the same was not in violation of competition norms.

According to the regulator, the norms pertaining to an agreement amongst enterprises or persons at different stages of the production chain in different markets would be in violation if such pact “causes or is likely to cause an appreciable adverse effect on competition in India.”

“In the present case, the opposite party (SaiCom Codes) being a buyer/consumer is not part of any production chain, and as such, the provisions of…The (Competition) Act are not attracted,” CCI said.