Hindu reported that Competition Commission of India has dismissed a case against State run Orissa Mining Corporation for abuse of its dominant position.

The anti monopoly watchdog, in its verdict, said that the market share held by Orissa Mining Corporation was a miniscule 9.52% and hence it could not be considered a dominant player.

CCI said that “The market share of the opposite party being a miniscule 9.52% … The market is fragmented and many other players are present who can cater to the requirements of the members. Therefore, the case of dominant position did not arise.”

The All Odisha Steel Federation had alleged that the state run corporation was abusing its dominant position by fixing arbitrary and unreasonable prices for iron ore. In its complaint, it said that the corporation was empanelling buyers for supply of iron ore who were assured of regular quota of iron ore based on their production and selling capacities even if they did not participate in the tender floated by the opposite party for determining the price of ore.

In 2009, the Orissa Mining Corporation changed its method and stopped empanelling buyers.

The federation also contended that the State run corporation earmarked a small quantity of iron ore through a price setting tender and the highest price quoted by some bidders was accepted and treated as benchmark.

The federation contended that this mode of price fixing was unfair since only a small quantity was kept for sale and the companies were allowed to participate in the tender process regardless of their capacity or size or past lifting records.

It alleged that to outbid others, some companies could quote unreasonable prices that could later become the listed price.

Source - Hindu

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