Shri Rajat Verma vs Public Works (B&R) Department ... on 9 July, 2018
"....Generally, as per the scheme laid down by the Act, the dominant
player (or enterprise) is the seller of goods/services who/which adversely
affects the buying side i.e. the consumer. In this case, the buyer has been
contended to be dominant and affecting the competition on selling side
of the market (by excluding some of the players, informant in this case).
Such cases of „buyer power‟ or buyer being dominant and abusing its
dominant position to suppress competition in the downstream market
have been assessed by competition regulators in other jurisdictions like
UK (Office of Fair Trading) and EU (European Commission). In the case
of buyer power it is the procurement markets, not the supply markets,
which have to be defined. The demand-side oriented market concept is
applied inversely in this context. From the suppliers point of view the
market definition is thus based on their ability to switch to alternative
sales opportunities. The definition focuses on the products the supplier is
Case No. 70 of 2014 Page 15 of 19
offering or would be able to offer without any significant problems.
Therefore, what needs to be seen in this case is that whether the OP, if at
all it is found to be dominant in the relevant market defined by the
Commission, had been able to adversely affect the competition in the
supply side of the market."