Genesis analysis endorsed by CCI in its decision to dismiss allegations against leading Indian steel producer

Genesis Analytics played a key role in the ruling by the Competition Commission of India (“CCI”) that dismissed the allegations of an anticompetitive agreement between Steel Authority of India Limited (“SAIL”) and Indian Railways (“IR”). The informant, Jindal Steel and Power Limited (“JSPL”), had alleged that the MoU entered between the two parties in 2003 for supply of rails was in contravention of the Competition Act, 2002 as it resulted in a denial of market access (Sec4) and at the same time, refusal to deal (Sec3).

Genesis was retained by SAIL to provide economic evidence to the CCI. The Commission endorsed the in­depth study conducted by Genesis that provided an economic rationale for the MoU. A substantial amount of emphasis was placed on the validity of the efficiencies and the procompetitive effects that were shown to occur as a result of the agreement. In addition, the findings of Genesis correcting the various shortcomings in the economic rigor of the allegations put forth by JSPL were upheld by the Commission. In particular, the CCI’s conclusion echoed Genesis’ results from the analysis of the grossly exaggerated claims by JSPL regarding the cost savings that would accrue to IR if it were to source rails from JSPL.

The matter is currently on­going as JSPL has appealed to the Competition Appellate Tribunal to reconsider the CCI’s decision.