CCI | Matter under Section 4 of Competition Act against NSE in “Co-location Case” closed as allegations yet to be established

Competition Commission of India (CCI): This information was filed before Ashok Kumar Gupta, Chairperson; Augustine Peter and U.C. Nahta, Members under Section 19(1)(a) of the Competition Act received by informant who is an advocate alleging National Stock Exchange of India Ltd. for abuse of dominance under Section 4 of the Act.

The informant had come with a prayer that the case of ‘NSE Co-location Case’ which is being investigated by SEBI, CBI and ITD should also be investigated by Competition Commission for abuse of dominance. Informant had submitted that by giving unfair preferential access to some trading members of its co-location services the NSE had abused its dominance. And that NSE is dominant in its field having greater market power than Bombay Stock Exchange.

The Commission observed that NSE had limited and restricted the provisions of its services to other trading members availing the co-location service which resulted in ‘denial of market access’ to others to whom such unfair access was not given. Thus, the informant has alleged contravention of Section 4(2) (b) (ii) and Section 4(2) (c) of the Act. Commission was of the view that it could independently take the present matter but, the allegations were yet to be established through appropriate proceedings. Therefore, the Commission ordered the matter to be closed in terms of the provisions of Section 26(2) of the Act.[Jitesh Maheshwari v. National Stock Exchange of India Ltd., Case No. 47 of 2018, Order dated 07-01-2019]

Join the discussion

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.