Aldine Formed by Praveen Sharma doesn’t Amount to Cartelization

New institute Aldine formed by Praveen Sharma and RK Mehta for CA/CS aspirants doesn’t amount to cartelization : Competition Commission of India.

Competition Commission of India said that ‘Many other coaching centers such as CA club India, J.K. Shah Classes, Institute of grooming, etc., were also providing similar online and offline coaching services for CA/CS aspirants. With the presence of other players in the market, it did not appear that Adline Ventures enjoyed a dominant position.’

Facts of the case:-

  • Mr. Praveen Sharma and Mr. R.K. Mehta, faculty of institutes for CA/CS aspirants, were running coaching classes for CA/CS aspirant under the Faculty Arrangement Agreement (‘FAA’) with coaching Institute ‘ETEN CA’. They shared all the confidential information under the agreement with each other.
  • As per ETEN CA, they alleged that Mr. Praveen Sharma and Mr. R.K. Mehta made certain illegal demands and threatened them to discontinue ongoing batches if their demands were not fulfilled.
  • Further, it alleged that Mr. Praveen sharma had started a new coaching institute in the name of ‘Adline Ventures’ and Mr. R.K. Mehta and others as faculty members were appointed in this new institute.
  • ETEN CA filed complaint with CCI that Mr. Praveen Sharma and other faculty members abused their dominant position by influencing the students and misusing the confidential information provided by ETEN CA. Further, it alleged that they indulged in anti-competitive agreement by cartelizing and adopting unfair trade practices.

Decision:-

New entity (i.e., Ad line Ventures) formed for competing with ETEN-CA doesn’t amount to cartelization as Mr. Parveen Sharma and other faculty members used their experience and expertise to operate their own business in the area of providing coaching classes.

Many other coaching centers such as CA club India, J.K. Shah Classes, Institute of grooming, etc., were also providing similar online and offline coaching services for CA/CS aspirants. With the presence of other players in the market, it did not appear that Adline Ventures enjoyed a dominant position.

 

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