The Competition Commission of India (CCI) recently dismissed a complaint by a law firm, Singhania & Partners, alleging anti-competitive conduct and abuse of dominant position against Microsoft and its dealer Embee Software.
The CCI held that the law firm had failed to provide any “cogent evidence” to show that Microsoft is abusing its dominant position in the relevant market. In addition, the CCI did not find any material that indicated that Microsoft and its dealer had used its dominant position in the market and its agreement with original equipment manufacturers (OEMs) to drive competitors out of the market.
Microsoft told the CCI that the cost differences in the licences for their products sold to OEMs, volume and retail customers were due to variations in support functions provided to each of them. OEM licences are issued to manufacturers of branded PCs and may not be resold unless the accompanying software is installed on a PC. OEM licences accounted for the highest volume. Microsoft said that discounts in OEM royalty rates were justified as the OEM version of the operating system provided efficiencies in installation, testing, support, warrantee, activation and updates.
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