New Delhi, Nov 28 (PTI) The Competition Commission todaydismissed allegations of unfair business practices againstskill and talent development firm NIIT with regard tofranchise agreements.
The Commission's order has come on separate complaintsfiled by NIIT's three Hyderabad-based franchisees, which areengaged in the business of provision of computer education andtraining services.
Since all the three complaints were against NIIT and theallegations were "substantially similar", the CompetitionCommission of India (CCI) has come out with a common orderfor the three cases.
It was alleged that NIIT was abusing its dominantposition through its franchise agreements and indulging inanti-competitive practices.
For the case, the CCI considered the "market for theprovision of computer education and training services inIndia" as the relevant one.
In an order, the CCI observed that apart from NIIT, thereare many other players operating in the relevant market andoffering similar courses in the area of computer education.
The regulator said even if the relevant market isnarrowed to the city of Hyderabad, "the OP (NIIT) is not thedominant player with presence of large players like Jetking,Aptech etc in the market".
The Commission also noted that the prevailing competitionis compelling NIIT to venture into online mode of deliverythough it learning portals such as Training.com, nguru andNIIT.tv.
"In order to improve efficiency in the market and to addvalue for the consumers, almost all the servicesincluding professional training are imparted through onlinemode rather than through the traditional classroom mode tomeet growing requirements of the consumers.
"This signifies that the OP's conduct is not contrary tothe dynamics of competition in the relevant market," CCI said.
The Commission disposed of the complaints against NIITafter finding no prima facie case of contravention of Sections3 or 4 of the Competition Act.
While Section 3 pertains to anti-competitive agreements,Section 4 relates to abuse of dominant market position. PTIVRNMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.