A probe has been ordered by the CCI against tech giant Intel for its India specific warranty policy with respect to its micro-processor chips called Boxed Micro-Processors or BMP. The practice has been labelled as “unfair and discriminatory especially when seen in the light of the fact that such differential treatment is not meted out by Intel in other jurisdictions.” The order also said that it “prima-facie results in limiting the market for BMPs in India” and “denies market access to parallel importers.” The complaint had been filed by Matrix Info Systems Pvt Ltd, an importer/supplier of IT products. Matrix had said, in its petition, that Intel’s deal awards exclusive selling rights to the Indian distributors that it has approved of, and warranty under the new policy is offered only when purchased from these specific dealers. It has claimed that it leads to a “total deprivation of consumer choice” Intel’s current policy in India doesn’t provide warranty for products bought from parallel importers even if these products were supplied by authorized distributors from abroad. Matrix has claimed that denial of market access to other resellers/parallel importers is against the laid down rules by the Competition Act, 2002, due to the dominant role Intel holds in the market. Intel in its defense has contended that its policy follows Indian law and that its reasoning behind the policy was so as to ensure customers bought authentic products. They said there was a “large unorganized market and parallel importers (like the Informant) often under-invoice goods or import old and salvaged parts disguised as new products”.
For more: http://www.newindianexpress.com/business/2019/aug/11/intels-india-warranty-policy- faces-cci-probe-2017111.html
This post has been authored by Naibedya, 1st year, National University of Juridical Sciences, Kolkata.
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