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COMPETITION COMMISSION OF INDIA Case No. 52 of 2013 In Re:

Financial Software and Systems Private Limited Informant And M/s ACI Worldwide Solutions Private Limited Opposite Party No. 1 M/s ACI Worldwide Incorporated, Florida, USA Opposite Party No. 2 M/s ACI Worldwide (Asia) Pvt. Limited, Singapore Opposite Party No. 3 CORAM Mr. Ashok Chawla Chairperson Mr. S. L. Bunker Member Mr. Sudhir Mital Member Mr. Augustine Peter Member Mr. U. C. Nahta Member Appearances:
1. M/s Financial Software and Systems Private Limited (hereinafter, the 'Informant'/'FSS') has filed the information in the instant case, under section 19(1)(a) of the Competition Act, 2002 (hereinafter, the 'Act') against M/s ACI Worldwide Solutions Private Limited (hereinafter, the 'Opposite Party No. 1'), M/s ACI Worldwide Incorporated, Florida, USA (hereinafter, the 'Opposite Party No. 2') and M/s ACI Worldwide (Asia) Pvt. Limited, Singapore (hereinafter, the 'Opposite Party No. 3') [collectively hereinafter, the 'Opposite Parties'/'ACI'], inter alia, alleging contravention of provisions of sections 3 and 4 of the Act in the matter.
2. Facts, in Brief

2.1 The Informant is stated to be a private limited company incorporated under the Companies Act, 1956 and operating in the areas of electronic payment, financial transaction processing solutions and services. It has been a technology partner, system integrator and co-innovator for several leading banks to transform their payment systems, increase operational efficiencies and launch new business processes. The Informant caters to the specific needs of the banks through its two business divisions i.e., FSS Technologies and FSSNeT. FSS Technologies provides services to the clients including systems integration, offshore development, product sustenance, project management and implementation, upgrade and migration services, product testing and certification, application testing, onsite technical support and 24/7 global helpdesk support. FSSNeT offers payment processing services across all delivery channels including Automated Teller Machine ('ATM'), Point of Sale ('POS') terminals, internet and mobile with authorization by the banks. It provides services such as card management, merchant management, internet payment gateway, mobile banking & mobile payment, reconciliation & settlement, financial inclusion, a bouquet of value added services and ATM management services on a pay-per-use model including leasing ATM and site management.

In this regard, it is noted that as per the replies received by the DG from ACI Banks such as Royal Bank of Scotland, Oriental Bank of Commerce (OBC), HDFC and Kotak Mahindra have stated that there are no constraints in changing from one EFT Switch to another. It is important to note that Kotak Mahindra has successfully shifted from BASE24 to Electra, Further, OBC has recently empanelled alternate vendor for providing EFT Switch, and the process of migration from existing switch has already begun. Furthermore, Bank of Maharashtra successfully migrated to FIS switching solution from a hosted solution. In such a market, it may be appropriate to consider the inter-generational nature of competition that firms in the relevant market face not only from the other players coming out with alternate products, but also from constant upgrade demands from their current installed base of customers.