Competition Commission orders investigation against ACI
Updated: Sep 16, 2013 05:14:59pm
New Delhi, Sept 16 (KNN) Competition Commission of India (CCI) has ordered investigation against leading provider of payment systems, M/s ACI India, M/s ACI Worldwide and M/s ACI Asia Pvt Limited (Respondents) on the allegations of contravention of provisions of Competition Act, according to an official release.
“CCI had issued the order under Section 26(1) of the Competition Act, 2002 on the basis of information filed by M/s Financial Software and System Private Limited (Informant). The informant has alleged that ACI has abused their dominance by imposing unfair conditions in the purchase or sale of goods or services through exclusive supply arrangements, limiting and restricting the technical or scientific development in the market etc,” said the Ministry of Corporate Affairs.
ACI is stated to be engaged in the business of developing software (BASE24) for electronic payment solutions which enables card-based payment transactions for banks.
BASE24 is a ‘Transaction Processing Switch’ software (EFT Switch), which enables an ATM or a Point of Sale (POS) terminal to communicate with the relevant bank’s core banking network.
As such, all banks and financial institutions, which desire to provide ATM, POS, mobile banking and internet banking services, require EFT Switch software. It is averred that at present about 77 per cent of ATMs in India and about 80 per cent of POS operate on BASE24.
“After initial examination, CCI has observed that Prima facie the conduct of the respondents amounts to ‘tie-in arrangement’ and ‘refusal to deal’. Such agreements are also likely to have appreciable adverse effect on competition looking at the market share and market size of the enterprise in question,” added the release.
The Director General, CCI shall complete the investigation within a period of 60 days from the date of the order.
CCI has also made it clear that nothing stated in this order shall tantamount to an expression of final opinion on the merits of the case and the DG shall conduct the investigation without being influenced by any observations made in the present order, Ministry added in the release. (KNN)
“CCI had issued the order under Section 26(1) of the Competition Act, 2002 on the basis of information filed by M/s Financial Software and System Private Limited (Informant). The informant has alleged that ACI has abused their dominance by imposing unfair conditions in the purchase or sale of goods or services through exclusive supply arrangements, limiting and restricting the technical or scientific development in the market etc,” said the Ministry of Corporate Affairs.
ACI is stated to be engaged in the business of developing software (BASE24) for electronic payment solutions which enables card-based payment transactions for banks.
BASE24 is a ‘Transaction Processing Switch’ software (EFT Switch), which enables an ATM or a Point of Sale (POS) terminal to communicate with the relevant bank’s core banking network.
As such, all banks and financial institutions, which desire to provide ATM, POS, mobile banking and internet banking services, require EFT Switch software. It is averred that at present about 77 per cent of ATMs in India and about 80 per cent of POS operate on BASE24.
“After initial examination, CCI has observed that Prima facie the conduct of the respondents amounts to ‘tie-in arrangement’ and ‘refusal to deal’. Such agreements are also likely to have appreciable adverse effect on competition looking at the market share and market size of the enterprise in question,” added the release.
The Director General, CCI shall complete the investigation within a period of 60 days from the date of the order.
CCI has also made it clear that nothing stated in this order shall tantamount to an expression of final opinion on the merits of the case and the DG shall conduct the investigation without being influenced by any observations made in the present order, Ministry added in the release. (KNN)
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