Fair trade regulator CCI has dismissed a complaint alleging unfair business practices against OPPO mobiles' distributor firm for halting supply of mobile phones and non settlement of dues. Disposing of the complaint, the regulator said, "the Commission holds that no case of contravention of either Section 3 or Section 4 of the Act is made out against the Oppo Mobiles MU Pvt Ltd in the present matter."
Section 3 and 4 pertain to anti-competitive agreements and abuse of dominant market position, respectively.
According to CCI, Oppo Mobiles MU is a Pune-based distributor of mobiles phones and accessories under the brand name 'OPPO' in India.
The ruling came on the complaint filed by K.C. Marketing, a Pune-based firm, which was appointed as the exclusive mobile distributor of OPPO mobiles in south and central Maharashtra after an agreement with the distributor firm.
K.C alleged that the Oppo MU unilaterally stopped supplying mobile phones and failed to settle outstanding dues and thereby contravened the Competition Act.
For the case, the Competition Commission of India (CCI) considered "the relevant market as the market for smartphones in India" and noted that Oppo Mobiles is not in a dominant position in the relevant markets.
The complaint pertaining to the stoppage of supply of mobile phones and non-settlement of outstanding dues, among others, CCI said it was "neither supported by any documentary proof, and nor do the same form a competition issue."
With regard to the clauses of the distributorship agreement restricting sales of the K.C outside south and central Maharashtra, CCI said that it cannot be held to be in contravention of Section 3 or 4 of the act in an order dated November 8.
Finding no contravention of the Competition Act, the regulator disposed of the matter.