The CCI has dismissed a case alleging unfair business practices against confectionery giant Mondelez India Foods, the maker of Cadbury chocolates, with regard to termination of a distribution agreement.
Noting that “no contravention of either Section 3 or Section 4 of the (Competition) Act” is made out against Mondelez, the fair trade regulator disposed of the matter. While Section 3 deals with anti-competitive agreements, Section 4 pertains to abuse of dominant market position.
A Maharashtra-based erstwhile stockist and distributor of products of Mondelez had alleged that the latter terminated the distribution agreement between the two entities on “frivolous and false grounds” after it had raised the issues of abuse of dominance and anti-competitive practices by the confectionery giant.
For the case, the Competition Commission of India (CCI) considered the ‘market for chocolate in India’, as the relevant one and also observed that Mondelez was in a dominant position in it.
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