2025

MOOT
PROPOSITIO
N

4 NALSAR-
th

ANTITRUST MOOT COURT

COMPETITION
CCI
1. T h e D e m o c r a t i c R e p u b l i c o f I n c a i s a g r o w i n g a n d a m b i t
iousdevelopingeconomyinthecontinent of Arica. De
spite itsaspirationsforeconomicgrowth,thecountryh
ashistoricallygrappledwithsignificantpublichealthc
hallengesincludingproteinmalnutrition.Thisconditi
onhasprofoundly stuntedthephysicalandcognitivegr
owthofitscitizens,particularlyamongchildrenandad
olescents.Theissuelargelystemsfromthedeeplyingra
ined dietary habits of Incans, whosetraditional
dietpredominantly excludes meat and meatproduc
ts, focusing instead on staples such as legumes, wheat
,
and rice. While nutritionally valuable, this diet has pro
ven to
beinsufficientinprovidingthe necessary levels of h
igh-qualityproteinrequiredbypeople, for optimal gr
owth anddevelopment.

2. R e c o g n i z i n g t h e u r g e n t n e e d to address this nutriti

onaldeficit,theIncangovernment has, over the past
decade,undertakenaseriesof targeted initiatives. T
hese includesignificant investments in livestock rear
ing, the establishment
of modern meat processing units, and aggressive cam
paigns
promotingtheinclusionofmeatproducts in everyday d
iets.Thesemeasureshaveyieldedmeasurablesuccess,
with meatconsumptionsteadilyincreasingacross variou
s demographicgroups.The Incan government also
regularly hostsdiscussions,conferencesetc.,wherein
different stakeholdersfrom this industry (such as doc
tors, nutritionists, producers
ofmeat products etc.), participate and discuss
thegovernment’spastandfuture initiatives and pol

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 icies inrelation to reducing nutritional deficit in In
ca.

3. T h e s o u t h e r n s t a t e o f D e s t o has emerged as
a critical player

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inthistransformation,becoming the largest producer
oflivestockandlivestockproducts in the country.
Desto’ssuccesshasbeen instrumental in achieving
a degree ofnutritionalself-sufficiencyforInca,mar
kingapivotal shiftin the nation’s public health narra
tive.

4. A m i d s t t h i s b a c k d r o p , t h e C o m p e t i t i o n C o m m i s s i o n o f
Inca(“C C I ”)initiatedahigh-profileinvestigation in
to allegedanti-competitive practices involving five
major manufacturers
/ producersoffrozenmeatproducts,i.e.,(i) Alpha Pvt. L
td.(“A l p h a ”),(ii)BetaPvt.Ltd.(“B e t a ”),(iii) Gam
ma GoodsPvt.Ltd.(“G a m m a ”), (iv) Delta Enterpr
ises Pvt. Ltd.(“D e l t a ”),and(v)EpsilonIndustries
Pvt.Ltd.(“E p s i l o n ”)(Alpha,Beta,Gamma,Delta an
d Epsilon are collectivelyreferredtoas “C o m p a
n i e s ”). The investigation waspromptedbyaninf
ormationfiledunder Section 19(1)(a) oftheIncaCom
petitionAct,2002(“A c t ”),by Kappa RetailersPrivat
eLimited(“K a p p a ”).Kappa is a rapidly growingn
ationwideBusiness-to-Customer(“B 2 C ”)grocery and f
ast-moving-consumer-goods(“F M C G ”)productsret
ail chain,primarilyservingthebustlingmetropolitan
cities of Inca.Kappaoperatesthroughbrick-and-mor
tarretailstoresin allthemajormetropolitancitieswhi
chprovidesits offerings atclosetowholesalepricesto
customers.Withits headquarterslocatedinRockbridg
e,the capital city-state, Kappa hascapturedaremar
kable40%market share in the FMCG andgroceryreta
ilsector,positioningitselfasa prominent retailplayer
in the industry.

5. I n l i n e w i t h i t s s t r a t e g y f o r g r o w t h a n d i n n o v a t i o n , K
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appadevised a plan to expand its offerings to include
frozen meat

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products.Thisinitiativewasintendedtobe undertaken o
n atrialbasisintheNorth-Incaregion,whichencompas
sedthreeofthelargeststatesinIncaalongwiththe econ
omically vitalcity-stateofRockbridge. As part of
this plan, KappaapproachedeachofthefiveCompani
esindividually,seekingprice quotes for a selection o
f frozen meat products.

6. A m o n g s t t h e C o m p a n i e s , A l p h a a n d B e t a o p e r a t e s t a t e - o f -
the-artmanufacturingfacilitiesforfrozenmeaton the
outskirtsofRockbridge,ensuringproximity to the na
tion’s largesturbanmarket.The other three Compan
ies, i.e., Gamma,Delta,and Epsilon have strateg
ically located theirmanufacturingunitsinthecapit
alcitiesofthe three states intheNorth-Incaregion, i.
e., Anzuk, Gotham and Zion, respecti vely.Thes
e l o c a t i o n s p r o v i d e l o g i s t i c a l a d v a n t a g e s ,allowin
gthemtoefficientlyservetheirprimary markets whilema
intaining competitive distribution networks.

7. K a p p a , l e v e r a g i n g i t s w e l l - e s t a b l i s h e d e x p e r t i s e a n d e x i
stingsupply-chainnetwork,aimedtonegotiate favoura
ble termswitheachof the Companies, for frozen m
eat products.Kappa’sbusinessmodel hinges on its
ability to offerproductsatpriceslowerthan prevail
ing retail rates, thusattractingcost-consciousconsu
mers. To strengthen itsproposal,Kappaofferedtot
ake full responsibility for thetransportationandcol
dstorage, proposing to pick up thefrozenmeatprodu
ctsdirectly from the facilities of theCompanies.
Kappaplannedtoutilizeitsexisting network ofinsulat
edvans,refrigeratedtrucks,andcoldstorage facilitiesto
ensureefficient and cost-effective delivery to i
tscustomers.
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8. K a p p a h a d m u l t i p l e rounds of negotiations with
theCompanies,anddespiteitscompellingoffer, the Co
mpanieswerereluctanttolowertheirpricesbelow the e
xisting retaillevels.Thisstancewas maintained eve
n though Kappa’sproposalsignificantlyreduced ext
ernal costs, such astransportation and storage, fo
r all the Companies.

9. A s a l a s t r e s o r t , t h e C o - f o u n d e r a n d C h i e f M a r k e t i n g O f
ficerofKappa,Ms.AranzzaAgrad,decidedto informal
ly discussKappa’sofferindividuallywiththeseniorma
nagementoftheCompanies,ata conference being ho
sted by the Incangovernmenton‘Meat:Whydon’t yo
u eat?’. Ms. Agrad wasawarethattherepresentatives
of the Companies would beattendingthisconference
since the Companies used toregularlyattendsimil
ar conferences hosted by Incangovernment.Acc
ordingly,inordertoinformally discuss itsofferonela
sttime,Ms.Agradwentfor this conference on 15Dece
mber2023,wheresheindividuallymet with the senior
executivesoftheCompanies.Duringthediscussionwit
h Ms.Agrad, the Companies stated that they would n
ot be able to
lower their respective prices given the importance
of
maintainingtheirpricingintegrityandpreserving establish
edrelationshipswithotherdistributorsandretailers.H
owever,theCompaniesconcludedthediscussionbystat
ing that theywillinternallydiscusswiththeirrespective
managements ande-mailKappawiththeirfinaldecision
. The Companies senttheirformalrejection e-mails
to Kappa’s offer on 16December2023.The rejecti
on e-mails are enclosed asAnnexure I.

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10. F r u s t r a t e d b y i t s inability to s e c u r ef a v o
urable terms and

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 suspectingco-ordinatedbehaviouramong the Compani
es,Kappafiledaninformationwiththe CCI on 26 Janua
ry 2024underSection19(1)(a)oftheAct (i.e., as Case
No. ABC of2024).

11. T h e C C I , a f t e r f o r m i n g a p r i m a f a c i e v i e w o f p o t e n
tialcollusionbetweentheCompaniesinrelationtotheir
pricing,marginsandstrategies,directedtheDirectorG
eneral(“DG”)toconductadetailedinvestigationthrou
ghanorder dated 24April2024(“PrimaFacie Order”).
Pursuant to the PrimaFacieOrder,theDGrequisition
ed for multiple informationanddatafromtheCompani
esduring its investigation. On 5October2024,theDG
carried out simultaneous surprise i n s p e c t i o n s a
t t h e h e a d o f f i c e s a n d m a n u f a c t u r i n g f a c i l i t
i e s o feachofthe Companies, to inter alia prevent
potentialtamperingwithevidence,in relation to Cas
e No. ABC of2024.

12. D u r i n g t h e s e r a i d s , t h e D G ’ s t e a m s e i z e d a n d m i r r
oredmobilephones,iPadsandlaptopsof all the person
nels thatwerepresentattherespective sites of the rai
ds. Data thatwasmirroredincludede-mails, financia
l records of thecompanies,internal documents,
WhatsApp messages(includingpersonalcommunica
tionandpictures) etc. Twospecific items that were m
irrored were:

a. A s t r a t e g y d o c u m e n t d a t e d 1 A p r i l 2 0 2 3 , f r o m D
eltatitled“NorthZonePlan”containing aggregat
ed, non-anonymizedpricingdataforcoldcutsfor
the financialyears (“FY”) 2021-2022 and 2022-
2023 and projected
prices for FY 2023-2024 and 2024-2025, noting the

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 purposetobealignmentwithgovernment’s initia
tives(thestrategydocumentis enclosed as Anne
xure II);and

b. A n e - m a i l d a t e d 3 June 2024 from the Head

ofMarketingandSalesofAlpha(i.e.,Mr.Nemo Na
varro)toGamma’sHeadof Marketing, in relatio
n to broadinsights on certain data for
Gamma (thecorrespondence is enclosed as An
nexure III).

13. D u r i n g t h e r a i d at the head office of Alpha, cert

aindocumentsthatwerestampedas‘TOBE SHREDDED’
, whichrevealedthatAlpha and Gamma were in talk
s of AlphaacquiringGammasinceApril2024,and the
transaction wasduetobeconsummated in the month o
f May 2025. AmongtheseizeddocumentsatGamma’s h
ead office, a term-sheetbetweenAlphaandGammawa
salso found, which indicatedthatAlphaandGammaha
ddiscussedpotential collaborationon pricing strategi
es post-acquisition. Specifically, it stated:

a. t h a t t h e p a r t i e s w o u l d a l i g n p r i c i n g a p p r o a c h e s
forcoldcuts and frozen meat products afte
r theacquisition, to maximize operational syne
rgies; and

a.
thatAlphamayprovideinputsonpricingstrategie
s andgeographicalallocationclosertotheconsum
mation oftheacquisitionregardingthe supply a
nd pricing ofproducts to preserve the valuatio
n of Gamma.

14. T h e d o c u m e n t s s e i z e d f r o m t h e r a i d s a l s o r e v e a l e d t
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hat Mr.Nemo Navarro (i.e., Alpha’s Head of Marketin
g and Sales),

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 hadaccesstoGamma’sprofitmargindataand cost structu
resduringtheduediligenceprocessofthe proposed tra
nsaction(i.e., acquisition of Alpha by Gamma).

15. B a s e d o n t h e i n f o r m a t i o n a n d d a t a w h i c h w a s ( i ) s u b m i t t
ed bytheCompaniestotheDG,and (ii) recovered from
the raids,theDGconcluded in its investigation re
port dated 5December2024(“DG Report”) that th
e Companies hadengagedinanti-competitivebehavi
ourandhad co-ordinatedtoalign the prices of froze
n meat products and theinformation shared bet
ween Alpha and Gamma was
competitively sensitive and could negatively influence m
arket
dynamics.BasedontheDG Report, the CCI concluded th
attheCompanieshad violated provisions of the Ac
t, andsubsequentlypassedanorderunderSection27 of
the Act on10January2025(“FinalOrder”),directingth
e Companies toceaseanddesistfromanti-competitive
behaviour and alsoimposed fines on each of the Com
panies.

16. T h e C o m p a n i e s d u r i n g t h e i n v e s t i g a t i o n b e f o r e t h e C C I ,
interaliaarguedintheirsubmissionsthatsimilar price
s have notaffectedtheconsumeratlargeandthesimilar
ity/ uniformityinpricesistoensure that the Compani
es are in alignmentwiththepoliciesandinitiatives, b
y the Incan government.Further,the evidence relie
d upon by the CCI wascircumstantialandtheirpr
icingdecisionswere independentlyjustifiedbythecosts
ofinputsand market conditions. AlphaandGammaalso
arguedthattheexchange of data in relationtoGamma’
sprofitmargin data and cost structures wereroutin
eforassessingviabilityofanacquisitionand possiblev

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aluation of the deal. Accordingly, all the Comp
anies,

[1
 challengedtheCCI’sfindings in Final Order before t
heInca’sCompetitionAppellateTribunal(“CAT”)under
Section53BoftheAct(i.e.,asAppeal No. XYZ of 2025)
on 1 March2025.

17. T h e c a s e h a s g a r n e r e d n a t i o n a l a t t e n t i o n , r a i s i n g i m p o
rtantquestionsaboutthescopeof competition law enf
orcement,theadmissibilityofevidence across inves
tigations, andmarketdynamics.Accordingly,theCA
T has culled out theissuessetoutbelow for adjudicat
ion on 22 and 23 March2025:

a. W h e t h e r t h e r e w a s e x i s t e n c e o f a n a n t i - c o m p e t i
tiveagreementbetweentheCompaniesunder Sect
ion 3 ofthe Act?

b. W h e t h e r t h e r e w a s e x i s t e n c e o f a n a n t i - c o m p e t i
tiveagreementbetweenAlphaandGammaunder S
ection 3oftheAct,separate to the alleged anti-
competitiveagreement between the Companies?

c. W h e t h e r t h e p r o p o s e d e x c h a n g e o f i n f o r m a t i o n u
nderthetermsheet between Alpha and Gamm
a is inviolation of the Act?

18. P l e a s e n o t e t h a t :

a. A l l l a w s o f I n c a a r e p a r i m a t e r i a t o l a w s o f I n d
ia,includingtheCompetitionAct,2002 (No. 12 o
f 2003)(as amended) and concomitant rules and
regulations;

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b. T h e a p p e l l a n t s i n t h e p r e s e n t m a t t e r w o u l d b e
theCompanies and the respondent would be CCI
; and

c. T h e c o u n s e l s a r e r e q u i r e d t o a d d r e s s t h e i s s u e s
andargumentsspecificallymentionedaboveand
are alsofreetoframesub-issues and make othe
r arguments(other than arguments on issue of j
urisdiction).

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 ANNEXURE I

F r o m : Nemo Navarro
S e n t : Saturday, December 16, 2023 13:03
S u b j e c t : Re: Proposal to Collaborate with Kappa

Dear Aranzza,
Itwasapleasureto meet you yesterday and thank you fo
rreachingouttouswithyourproposal to collaborate wi
th theKappaforsellingourproducts.We greatly appre
ciate yourinterest in Alpha’s product range.

Aftercarefulconsideration,weregrettoinform you that

weareunabletoproceedwith this collaboration at thi
s time.Ourdecisionisprimarilydriven by the need to
uphold ourlong-standingrelationshipswithourexisti
ng retailers anddistributorsacrossthecountry.Toens
ure equitable pricingandmaintainthesevaluablepart
nerships, we are unable tolower our costs below the
current retail prices.

Wetrust you understand the importance of thes

erelationshipstoourbusinessandtheconstraints it pla
ces onour ability to engage with new distribution cha
nnels.

Thankyouonceagain for your interest. We wish Kapp

acontinued success in its endeavours.

Best regards,N
emo Navarro
Head of Marketing and Sales, Alpha

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F r o m : Dorothy Dory
S e n t : Saturday, December 16, 2023 13:02
S u b j e c t : Re: Proposal to Collaborate wit

h KappaDear Aranzza,

Thankyouforyourproposal to collaborate with Kapp

a forsellingBetaproducts.Wetruly appreciate your i
nterest inpartneringwithus.Further,it was a pleasur
e to meet youyesterday.

Afterthoroughreview,we regret to inform you that

wecannotproceedwith this collaboration at the m
oment.Maintainingstrong relationships with our
existingdistributorsandretailersisofutmost importa
nce to us, andtoprotecttheserelationships,weareuna
ble to offer pricingbelow the current retail levels.

Wehopeyou understand our position and the reaso

ningbehind this decision.

Thankyouonceagainforconsidering Beta. We wish yo

u allthe best in your business endeavours.

Best regards
,Dorothy Do
ry
Head of Sales, Beta

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F r o m : Bruce Wayne
S e n t : Saturday, December 16, 2023 13:04
S u b j e c t : Re: Proposal to Collaborate wit

h KappaDear Aranzza,

Thankyouforreachingoutto Gamma with your propos

al tocollaboratewithKappa.Weappreciate your inter
est in ourproducts and the opportunity to explore ne
w avenues.

However,aftercarefulevaluation,we regret to inform

youthatwecannotmoveforwardwith this collaboratio
n at thistime.Ourexisting relationships with dist
ributors andretailers nationwide are critical to ou
r operations, and in
order to preserve these partnerships, we are unable to
adjust
our pricing below the current retail cost.

Wehope for your understanding and thank you

forconsideringGamma.Itwasa pleasure to meeting w
ith youyesterdayandlook forward to meeting you a
t the nextindustry conference.

Best regard
s,Bruce Wa
yne
Head of Marketing, Gamma

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F r o m : Tony Stark
S e n t : Saturday, December 16, 2023 13:06
S u b j e c t : Re: Proposal to Collaborate wit

h KappaDear Aranzza,

Itwasgoodmeetingyouyesterday, after such a long ti

me –andthankyou once again for expressing int
erest inpartneringwithDeltaforthe sale of our prod
ucts throughKappa. We greatly value your considerat
ion.

Afterinternaldiscussions,weregretto inform you tha

t weareunabletoproceedwith this collaboration. To
maintainthetrustand confidence of our existing r
etailers anddistributors,wemustadheretoourcurrent
pricing structure,which prevents us from lowering pri
ces below the retail level.

Wehopethis decision does not deter you from fu

turecollaboration opportunities.

Best regard
s,Tony Sta
rk
Chief Executive Officer and Chief Marketing Officer, D
elta

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F r o m : Steven Rogers
S e n t : Saturday, December 16, 2023 13:05
S u b j e c t : Re: Proposal to Collaborate wit

h KappaDear Aranzza,

Thankyouforreachingoutto Epsilon with your propos

al tocollaborateonsellingourproductsthroughKappa.
We trulyappreciate your interest in our offerings.

Uponcarefulconsideration,weregretto inform you th

at wecannotproceed with the proposed partners
hip. Ourcommitmenttomaintainingstrongandequitabl
e relationshipswithourexistingdistributors and ret
ailers necessitatesadherencetoour current pricing
model, which does notpermit reductions below the
retail price.

Weappreciateyourunderstandingof our position and

wishKappaeverysuccessin its endeavours. Please d
o stay intouchandIlookforwardto discussing more i
ndustry issueslike we did yesterday.

Best regards,
Steven Rogers,
Head of Sales, Epsilon

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 ANNEXURE II

[On the letterhead of Delta Ente

rprises]North Zone P

lan

Date: 1 April 2023

Background

Thecompilationofpricingdatapresentedinthis docum
ent isaresultofcollaborativeeffortsbetweenvarious sta
keholders,includingtheGovernmentof Inca and othe
r key playerswithinthe industry. This initiative
aligns with thegovernment’sbroaderobjectivesto
address malnutritionconcernsthroughthepromotion
of affordable, accessible,andnutritiouscold cuts a
nd meat products. In recentm e e t i n g s w i t h r e g u l a
t o r y a u t h o r i t i e s , i n d u s t r y s t a k e h o l d e r s ,andother
market participants, it was recognized thatregu
lationofmarketcouldplayacrucial role in stimulatin
gconsumptionoftheseessentialfooditems,whicharevi
tal forimproving public health outcomes.

Thisreportconsolidatespricing structures and ind

ustryinsightsthatreflect the outcomes of these
strategicd i s c u s s i o n s , a i m i n g t o e n s u r e m a r k e t s t a
b i l i t y w h i l e a d h e r i n gtogovernmentalguidelines.By
fosteringsynergies betweenindustryleaders,weseekt
ocreate a more efficient pricingframework that s
upports both consumer needs and

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sustainable industry practices. The collaborative ap
proach
takenreflectsa shared commitment to addressing
thechallengesposedby malnutrition, while also en
hancingoperational efficiencies across the sector.

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Table 1: Data in relation to prices (hi
storic andprojected)

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 ANNEXURE III

F r o m : Nemo Navarro
S e n t : Monday, June 3, 2024 18:06
Subject: Request for broad ins
ights on margin-related datafor Gamma

Hi Bruce,

Ihopethise-mailfindsyou well. First and foremost, t

hankyouforyour continued effort in ensuring that
this duediligenceprocessisconducted seamlessly an
d within theboundsofallcomplianceprotocols.Thein
sightsandanalysisyou’vesharedsofarhave been instr
umental in helping usnavigatetheearlystagesof this
potential transaction withGamma.

Webelievethat a closer collaboration could pro

videsignificantopportunitiestoenhanceourpositions
as marketleaders,bothpre and post our transactio
n. Given ourcomplementarystrengthsandthepotenti
al for operationalsynergies,weseepromisingavenue
s through our combinedcapabilitiesthatcouldenable
ustodrivegreatervalue, scale,andinnovationwithinth
eindustry. By exploring potentialwaystoalignour st
rategies, we believe we could furthersolidifyourst
andingandleadthe way in shaping the futureof the ma
rket.

Asweprogress,Iwantedto touch base regarding a spe

cificquery–i.e.,we are keen to understand the pro
fitabilityacrossGamma’sproduct categories. While
I completelyunderstand the sensitivity of detailed m
argin data, it would

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be helpful to receive broad insights or aggregated rang
es that
canprovidedirectional clarity. We would also lik
e tounderstandtheproducts that are driving highe
r margincontributionsversuslower-marginproducts,
tostartworkonmerging our product catalogues.

Lookingforwardtoyourinsightsand,asalways, gratef
ul foryourmeticulousapproach.Imaydisturbyou agai
n, for somebroadproductionrelated data (including
the projectedproductionnumbersof Gamma for the
current and nextfinancial year).

Pleaseletmeknowifyourequire any clarification or if

youwouldliketodiscusstheabovepointsover a call / i
n-person(if easier).

Best regards
,Nemo Navar
ro
Head of Marketing and Sales, Alpha

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