CCI has dismissed allegations of anti-competitive practices against Fangs Technology, engaged in trading and distribution of 'Vivo' mobile handsets, with regard to distributorship agreement.

Tamil Nadu Consumer Products Distributors Association had alleged imposition of unreasonable and unfair conditions on distributors after entering into Vivo distributorship agreement with it.

It held that:

• Relevant market was 'market for smartphones in India', and Fangs not dominant in it.
• Conduct of imposing restriction on distributors in doing business with 'Oppo' and 'Honor' is not anti-competitive as the clause was added to avoid leakage of intellectual property and technical know-how of Vivo and they are its competitors at global level. Its distributors are free to engage with other competing brands and several are dealing in them.
• No evidence has been adduced to substantiate allegations like resale price maintenance, prior approval for appointment of a retailer by a distributor, no credit facility to distributors, etc.
• The informant has failed to show that the clauses of the agreement have anti-competitive effects in the market.
• No contravention of S. 3 or S. 4 of the Act is made out.

For more: https://www.cci.gov.in/sites/default/files/Case%20No.%2015%20of%202018.pdf