eSys Information Technologies Pvt. Ltd. vs. Intel (Competition Commission of India)

The Situation

In 2011, eSys Information Technologies Pvt. Ltd., an Indian distributor that Intel had terminated, filed an “information” (a complaint) with the Competition Commission of India (CCI). The Complaint accused Intel of abusing a dominant position in India and alleged that Intel had engaged in a wide range of anticompetitive behavior, including, among other things, resale price maintenance, price discrimination, foreclosure of distribution to Intel’s competitors, and tying.

NERA's Role

A NERA team led by Dr. Sumanth Addanki was retained by counsel for Intel to analyze and evaluate the allegations by eSys. Based on a review of documents and data, discussions with Intel personnel, and consideration of the relevant economic literature, Dr. Addanki filed several reports addressing the allegations by eSys and responding to particular questions posed by the Indian competition authorities, including an assessment of how the discounts and rebates in Intel’s distributor agreements functioned as an economic matter. In addition, he gave an oral presentation in New Delhi before the Directorate General, which, at the direction of the CCI, was conducting the investigation. Dr. Addanki demonstrated that many of eSys’s allegations were factually false. Moreover, he explained, the behavior by Intel about which eSys complained was not anticompetitive. Indeed, the incentives in Intel’s distributor agreement reflected reasonable practices and were, in many respects, pro-competitive. Finally, he explained that Intel’s policies and conduct did not foreclose competition from rival manufacturers of microprocessors.

The Result

The CCI concluded that Intel did not engage in abuse of dominance.