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2014 (2) TMI 1398

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..... consumer (members of OP) in this case was being limited. The members of OP had no option, but to attend the seminars organized by OP (whatever be the quality of seminars) to get the requisite CPE credits.The restriction put on by OP does not meet the objectives sought to be achieved by the policy. There are hundreds of seminars and conferences organized every month across India by reputed chambers of commerce like CCI, FICCI, ASSOCHAM, NASSCOM, etc. However, these seminars/conferences are not recognised by OP for CPE credits. Prima facie, it appears to be an unreasonable restraint and the members CA of OP are left with no option but to compulsorily attend seminars organized by OP and its organs. Informant has pointed out in his informa .....

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..... 1)(a) of the Competition Act, 2002, ( Act )alleging abuse of dominant position by Opposite Party ( OP ) under Section 4 of the Competition Act, 2002 ( the Act ) by imposing unfair and discriminatory conditions with respect to its Continuing Professional Education ( CPE ) scheme of OP. 2. The Institute of Chartered Accountants of India ( ICAI ), i.e. OP, is a Statutory Body established under the Chartered Accountants Act, 1949 ( CA Act ) for the regulation of the profession of Chartered Accountants in India.OP is governed by the Central Council, which is the apex decision making body consisting of 32 elected members and 8 government nominees. There are about 2,16,459 members (including fellows and associates) of OP. In addition to Central .....

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..... to enable its members to maintain the requisite professional competence and to ensure high quality and standards in the professional services they render, the OP has identified Continuing Professional Education Scheme ( CPE ) as a major area of focus for the members.It is this CPE policy of OP which has been challenged by the informant in the present matter being discriminatory and abusive in terms of Section 4 of the Act.The Informant is a qualified Chartered Accountant and is aggrieved by the discriminatory CPE policy of the OP which does not allow any other organization to provide the service of organizing CPE seminars other than the OP s recognised Program Organising Unit ( POU ). 4. The Commission perused the information and also h .....

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..... ctured CPE credits and organization of the seminars/conferences/workshops for obtaining these credits. In view of the aforesaid, the relevant product market in the present case would be the market for organizing recognised CPE Seminars/Workshops/Conferences .As conditions for these product/services from demand and supply aspects are distinctly homogenous throughout India, relevant geographic market would be pan India. As such, relevant market would be organizing recognised CPE Seminars/Workshops/Conferences in India . 7. It is stated by the informant that OP was dominant in the relevant market of organizing CPE Seminars as it, through the CPE Policy, had allowed only the Program Organising Units ( POU ) recognized by OP to conduct the .....

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..... rs or speakers. The aforesaid information shows that OP through its CPE Study Circles was the sole provider for organizing CPE Seminars for CPE credits required by its more than 2 lakh members to move up in their professional ladder. As such prima facie, OP appeared to be a dominant player in the relevant market. 9. There seems to be force in the allegations of the informant that the restriction put in by OP in not allowing any other organization to conduct the CPE seminars for CPE credits, createdan entry barrier for the other players in the relevant market. Further, the choice of the consumer (members of OP) in this case was being limited. The members of OP had no option, but to attend the seminars organized by OP (whatever be the qual .....

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..... nting bodies of the world, i.e. in US, UK, Singapore, Australia, etc. 11. Accordingly, the Commission directs the Director General (DG) to cause an investigation to be made into the matter and to complete the investigation within a period of 60 days from receipt of this order. If during the course of investigation, involvement of any other party is found, the DG shall investigate the conduct of such other parties including the conduct of group companies, if any, in terms of the proviso to section 27 of the Act. 12. The DG is also directed to investigate the role (if any) of the persons who were in charge of, and were responsible to the companies for the conduct of the businesses of such companies, after giving due opportunity of heari .....

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