The Supreme Court of India reinforces effects-based standards in establishing abuse of dominance

Published On: 02/06/2025

Practice Area: Competition Law

Authors:

In a pivotal ruling for India’s competition law regime, the Hon’ble Supreme Court of India (“SC”), in Competition Commission of India v. Schott Glass India Pvt. Ltd. & Anr[1]., upheld the decision of the erstwhile appellate tribunal – Competition Appellate Tribunal (“COMPAT”) and dismissed appeals filed by the Competition Commission of India (“CCI”) and Kapoor Glass India Pvt. Ltd. (“Kapoor Glass”). The SC affirmed that discount schemes/ rebates which are volume-based/ premised on performing certain functions, when applied consistently and backed by sound commercial reasoning, represent a legitimate business practice and do not, by themselves, amount to discriminatory or exclusionary conduct. The SC also reaffirmed the importance of adopting an ‘effects-based analysis’ in cases pertaining to abuse of dominance.