Order 1734075539
Order 1734075539
And
Ravneet Kaur
Chairperson
Anil Agrawal
Member
Sweta Kakkad
Member
Deepak Anurag
Member
Appearances:
For Informant Mr. Shane Zenon Sequeira, Director of the Informant
For Opposite Party No. 1 Mr. Karan Pratap Singh and Mr. Tarandeep Singh, Advocates
For Opposite Party No. 2 None
For Opposite Party No. 3 Mr. Karan Singh Chandhiok, Mr. Mehul Parti, Mr. Uday Bali and
Ms. Saumya Sunidhi, Advocates
For Opposite Party No. 4 Mr. Prateek Kumar and Mr. Arjun Suresh, Advocates
1. The present Information has been filed by TT Friendly Super League Association
(TTFSL/ ‘the Informant’) under Section 19(1)(a) of the Competition Act, 2002
(‘the Act’) against The Suburban Table Tennis Association, (TSTTA/ ‘Opposite
Party 1’/‘OP-1’); Maharashtra State Table Tennis Association
(MSTTA/‘Opposite Party 2’/‘OP-2’); and Table Tennis Federation of India
(TTFI/ ‘Opposite Party 3’/‘OP-3’) alleging contravention of the provisions of
Sections 3 and 4 of the Act . During the course of investigation, Gujarat State Table
2. As per the averments made in the Information, the Informant is an NGO registered
under Section 8 of the Companies Act, 2013, incorporated on 06.08.2020. The
Informant is stated to work with the sole purpose of the promotion of Table Tennis
(TT) in India, as stated in the Objective Clauses of its Memorandum of Association
(MoA), and conducts friendly TT matches for its members around Mumbai City,
Mumbai Suburban and Thane District in Maharashtra, as per the convenience of
players and availability of venues, without any concept of prize money, referee,
cup, medal, certificate or ranking of any sort. OP-1 is a registered society and is the
district body headquartered in Mumbai having an affiliation with the State Body,
with jurisdiction over Mumbai Suburban District only, responsible for conducting
open district ranking tournaments in Mumbai Suburban jurisdiction for the
selection of players to represent the State as well as promotion of TT in its
jurisdiction. OP-2 is the State Body headquartered in Pune, Maharashtra having an
affiliation with the National Sports Federation (NSF), responsible for conducting
open state ranking tournaments in the State of Maharashtra as well as for selection
of players from its affiliated districts to represent the State as well as promotion of
TT within the State of Maharashtra. OP-3 is the NSF for the sport of TT in India,
recognized by the Ministry of Youth Affairs and Sports (MYA&S), under the
National Sports Code 2011, and is a registered society under the Societies
Registrations Act 1860, responsible for conducting national ranking tournaments
and selection of players from various States to represent India in various
international competitions such as Olympics, Commonwealth and Asian Games.
OP-3 is also recognized by International Table Tennis Federation (ITTF) and is
also the affiliated member of Indian Olympic Association (IOA) for regulation of
the game of TT in India. OP-4 the State Body headquartered in Gandhidham,
Gujarat recognised by Sports Authority of Gujarat (SAG), Government of Gujarat
and is affiliated to the TTFI, New Delhi, with the objective of developing and
promoting the game of TT in the State of Gujarat.
4. In addition, the Informant has alleged certain clauses of OP-3’s MoA related to the
definition of tournament, sanction for open tournament, restriction of players from
participating in any unrecognised tournament and right to prohibit unauthorised
tournaments by Executive Committee of OP-3, as anti-competitive.
11. The DG found that the following clauses of Rules and Regulations for the conduct of
tournaments – Year 2021-2022 of OP-1 are anti-competitive/ restrictive in nature as they
make it mandatory for a TT club/ academy to get affiliated with TSTTA for conducting a
TT event/ tournament in Mumbai Suburban Revenue District and hence, contravenes the
Sections 4(2)(a)(i) and 4(2)(b)(i) of the Act:
“The Club/ Gymkhana/ TT Academy interested in conducting TT Tournament in
Mumbai Suburban Revenue District need to get affiliated with TSTTA Mumbai by
filling up the TSTTA Affiliation Form and paying stated applicable fees therein.
…….
Chief Referee, Joint/ Assistant Chief Referee, Umpires will be appointed only by
TSTTA-Mumbai for all the tournaments held in its jurisdiction. The expenses for them
are to be borne by the organizers
. ……..
The Tournament will be conducted as per the Rules and Regulations of TTFI and as
adopted by MSTTA & TSTTA-Mumbai”
12. The DG found that clause 22(d) of the scheme of MSTTA is anti-competitive as it
13. DG found that certain clauses of the MoA of TTFI are anti-competitive in nature as clauses
24C (e), (f) & (h) and 27 (a) restrict organizing of TT tournaments/ events unless authorized
by the recognized federation/ association and the clauses 28 (a) & (b) restrict participation
of players in unauthorized TT events/ tournaments. Furthermore, the DG also found that
Public Notice dated 06.07.2022 issued by the TTFI (OP-3) in the matter of Gujarat Super
League Table Tennis (GSL), not only restricted the organization of the GSL by affiliated
state associations without TTFI approval but also discouraged players from participating in
unapproved events, limiting their career prospects. Therefore, OP-3 is found to be in
violation of Section 4(2)(a)(i), 4(2)(b)(i), and 4(2)(c) of the Act.
15. Based on the totality of the facts DG concluded that the OPs are in violation of Sections
4(2)(a)(i), 4(2)(b)(i) and 4(2)(c) of the Act.
Issue (d): Whether the OPs are involved in activities in contravention of
Section 3(1) read with Section 3(3) of the Act?
18. The Commission considered the Investigation Report of the DG in its ordinary
meeting held on 07.07.2023 and directed to forward an electronic copy thereof
(non-confidential version) to the Informant and OPs, for filing their respective
objections/ suggestions, if any to the Investigation Report submitted by the DG.
20. The Informant argued that the DG’s report did not sufficiently examine whether
OP-1 and OP-4 were also in violation of Section 4(e) of the Act. The Informant
contended that the DG did not investigate the intended purpose of the introduction
of those particular byelaws in OP-3's MoA, and why they were not removed when
other sports federations were deleting similar provisions in cases decided by the
Commission.
21. Additionally, it was submitted that the DG failed to recognize that OP-4’s anti-
competitive clauses in its MoA/byelaws indirectly enable the banning of clubs and
academies by allowing direct action against coaches. This, in effect, enforces
horizontal agreements with clubs and academies, thereby restricting services in
violation of Section 3 of the Act.
.
Objections/Comments to the Investigation Report by OPs
22. At the outset, OP-1 submitted that the Informant has approached the wrong forum
for the reliefs and has alternate efficacious remedies available under the various
laws to espouse his grievance and to challenge the ultra-vires of any provision of
its MoA. It further submitted that, OP-1 is not covered by the definition ‘enterprise’
as defined in Section 2(h) of the Act.
23. OP-1 submitted that the gravamen of the Information filed in the case is the
WhatsApp advisory issued by OP-1 through its Secretary Mr. Sameer Bhate dated
30.10.2020. This advisory was later withdrawn through a subsequent message
posted on the same WhatsApp group on 28.02.2022, and this information was duly
communicated to the DG.
25. OP-1 further submitted that the DG has failed to conduct an ‘effects-test’ when it
comes to finding contravention of section 4 of the Act. The lack of such an effects
test is further pronounced by the fact that the Informant has now come out to
suggest that it has currently 630 registered members and has conducted more TT
tournaments in many more venues than OP-1 in calendar years 2022-23.
27. OP-2 submitted that it has removed Clause 22(d) from the MSTTA’s
organizational scheme. Regarding Clause 22(e), OP-2 submitted that this clause
aims to uphold discipline within the sport by prohibiting member or player actions
that could harm the game, which is essential for maintaining checks and balances
and controlling any misconduct by members or players during tournaments.
28. OP-3 in its objections submitted that it is a NSF responsible for the promotion and
development of the sport of TT in India. As an NSF and per Article 32 of the TTFI
MoA, TTFI has no profit-making objectives and therefore, has no incentive to
abuse any alleged dominance. OP-3 also submitted that it would be incorrect to
29. OP-3 further submitted that including the alleged clauses in the MoA did not ipso
facto result in anti-competitive conduct as they are standard industry practice,
objectively justified, and purely regulatory. OP-3 also stated that it has not taken
any action related to the alleged clauses that restrict the development of the sport.
30. Regarding the Public Notice dated 06.07.2022 on the GSL matter, OP-3 stated that
the notice issued by TTFI was purely clarificatory, and intended to benefit
stakeholders and the public. OP-3 explained that the main reason for issuing the
notice was a complaint from the Karnataka Table Tennis Association on
21.06.2022, which sought clarification on whether the GSL was approved by
TTFI, as registered players are not permitted to participate in unapproved
tournaments. OP-3 further noted that the notice aimed to address any
misrepresentation by GSTTA, which had promoted the GSL as a TTFI-affiliated
or supported event.
31. Additionally, OP-3 submitted that the Commission may consider relevant
mitigating factors, including that TTFI operates in the public interest without a
profit-maximization motive, that its conduct has no anti-competitive effect on the
market, and that it ceased the alleged conduct to comply with the Act. OP-3 further
noted that TTFI has no prior violations under the Act and that any monetary
penalty would significantly hinder TTFI’s ability to carry out its operations.
32. OP-4 in its objection to the DG Report submitted that Clause 25 of the Constitution
of GSTTA related to the participation of TT players in the unrecognized
tournament was introduced in the interest of protecting the rights of professional
TT players and to protect the larger class of professional TT players, a large
section of which is minor, from such unauthorized tournaments which may be
conducted in a casual manner without strict adherence to the international
standards and rules of the game, because of which reason the participation in such
33. OP-4 further submitted that as far as the circular dated 15.02.2021, regarding the
4th Gujarat State Masters Games, no action has been perpetuated on the basis of
the said circular to date, and no player or technical official has ever been barred
for participating in such tournaments.
Informant’s Rejoinder
34. In its rejoinder, the Informant argued that the DG erred in its findings on the
violation of section 3(3) of the Act. The Informant pointed out that the DG failed
to recognize that voting rights within OP-1 are granted to clubs or academies, not
to the individual players registered with those clubs or academies. As a result, OP-
1 exercises direct control over these clubs or academies, which constitutes a
horizontal agreement. The Informant further stated that, to date, OP-3 has not
amended its bylaws, and only superficial resolutions have been passed. The
Informant also argued that OP-3's assertion that the Public Notice dated 06.07.2022
regarding the GSL was merely clarificatory is incorrect, as the language used in the
notice was threatening and suggested that OP-3 aimed to deter players from
participating in the GSL.
35. The Commission heard the parties on 10.07.2024, 29.08.2024, and on 23.10.2024.
After hearing the Informant and the counsel(s) for the OP-1, OP-3, and OP-4, the
Commission decided to issue an appropriate order in due course. No one appeared
on behalf of OP-2, and no communication was received in this regard. The
Commission also granted the parties the opportunity to submit brief written
submissions, if desired, by 08.11.2024, and permitted the OPs to include their
arguments regarding penalties within their written submissions.
37. OP-3 also submitted that it has issued a clarificatory circular dated 14.09.2024
across its affiliated state TT associations, requesting them not to take any action
against players, coaches, others, and associations for participating in unaffiliated/
private tournaments/ events. Thereafter, OP-3 informed that it also uploaded the
amended MoA on its official website and submitted a copy of the amended MoA
on Affidavit before the Commission.
38. In its post-hearing written submission, OP-3 argued that the DG Report classified
TTFI as an enterprise and a dominant entity based on its regulatory role as the
NSF for TT in India. However, OP-3 contended that the DG Report failed to
distinguish between TTFI’s regulatory and economic activities when determining
its status as an "enterprise." OP-3 argued that concluding TTFI is an enterprise
solely because certain activities are economic is flawed, particularly as the report
does not differentiate whether these economic activities arise from TTFI's
regulatory or economic functions. Additionally, TTFI addressed the issue of
monetary penalties and requested the Commission to consider mitigating factors,
including compliance measures undertaken, the absence of any violation of the
Act's provisions, non-implementation of the alleged Clauses, reliance on
government grants for operations, and financial losses incurred during FY 2020-
2021 and FY 2021-2022.
39. OP-4 in its written submission has stated that Annual General Meeting of the
GSTTA was held on 11.08.2024 wherein the alleged anti-competitive Clauses of
the Constitution of the GSTTA were amended as follows:
Clause 25 of the Constitution of the GSTTA before amendment
25 Restriction on Participation:
(a) No player of the GSTTA shall take part in any open tournament which has not
been approved or prohibited by GSTTA.
40. OP-4 also submitted that vide its Letter dated 19.07.2024 it has withdrawn its
earlier Letter dated 15.02.2021 in respect of participation of players in un-
authorized events. OP-4 in its post-hearing written submission also submitted that
each of the alleged contraventions merely constituted onetime occurrences which
have since been rectified to the extent that the necessary market correction has
already taken place. Additionally, OP-4 has submitted mitigating factors, including
continuous cooperation during the investigation, status as a first-time offender, and
voluntary compliance. Based on these submissions, OP-4 contends that no penalty
should be imposed.
Analysis
41. The Commission has examined all the material available on record including the
Information filed by the Informant, the Investigation Report of the DG, objections/
42. Before dealing with the merits of the case, the Commission deems it appropriate to
deal with the preliminary objection raised by OPs i.e. OPs are not ‘enterprise’
within the meaning of Section 2(h) of the Act and, as such, they cannot be
proceeded against under the Act.
43. In this regard, it suffices to note that Section 2(h) of the Act defines ‘enterprise’ as
including inter alia any person or Department of the Government, including units,
divisions, subsidiaries, which is engaged in any economic activity, relating to the
production, storage, supply, distribution, acquisition or control of articles or goods,
or the provision of services, of any kind. The definition is very wide in its amplitude
and covers all activities of specified nature of any kind. Further, as per Section
2(u) of the Act, ‘service’ means service of any description which is made available
to potential users and includes the provision of services in connection with business
of any industrial or commercial matters such as banking, communication,
education, financing, insurance, chit funds, real estate, transport, storage, material
treatment, processing, supply of electrical or other energy, boarding, lodging,
entertainment, amusement, construction, repair, conveying of news or information
and advertising.
44. The thrust of the definition of the term ‘enterprise’ is on the economic nature of the
activities discharged by the entities concerned. It is immaterial whether such
economic activities were undertaken for profit making/ commercial purpose or for
philanthropic purpose. Thus, even non-commercial economic activities would be
subject to the discipline of the Act as the Act does not distinguish economic
activities based on commercial or non-commercial nature thereof. In ascertaining
as to whether an entity qualifies to be an ‘enterprise’, the Commission adopts a
functional rather than a formal approach.
46. The decisional practice of the Commission has also been to consider sports
federations as ‘enterprise’ if they are engaged in activities covered under Section
2(h) of the Act. Reference is drawn to the decisions of the Commission in Hemant
Sharma & Others Vs. All India Chess Federation (Case No. 79 of 2011), Dhanraj
Pillay and others v. Hockey India (Case No. 73 of 2011), and Surinder Singh Barmi
v. Board for Control of Cricket in India (Case No. 61 of 2010), in this regard.
47. In the view of statutory framework defining ‘enterprise’ as detailed above and
keeping in view the nature of functions performed by OPs, as adumbrated supra,
OPs are held to be ‘enterprise’ within the meaning of the term as defined in Section
2(h) of the Act.
48. Having held OPs to be an ‘enterprise’, the Commission now proceeds to assess the
impugned conduct of OPs within the parameters of Section 4 of the Act which
prohibits abuse of dominant position by undertakings in the relevant market.
49. In this regard, first the relevant market needs to be defined and thereafter the
dominance of the enterprise or group concerned has to be ascertained therein before
proceeding to examine the alleged abusive conduct.
50. In any case of alleged abuse of dominant position, delineation of relevant market
is important as it sets out the boundaries of competition analysis. Proper delineation
of relevant market is necessary to identify in a systematic manner, the competing
alternatives available to the consumers and accordingly the competitive constraints
faced by the enterprise under scrutiny. The process of defining the relevant market
52. The Commission agrees with the DG's delineation of the relevant markets,
considering the unique nature of TT, restrictions on events and players, and the
nationwide governance of the sport by OP-3 (TTFI) through rules enforced by state
and district associations.
53. Accordingly, the Commission concludes that relevant markets in the instant case
would be:
54. As the factors attributing to dominance of OPs are largely similar in both the
relevant markets, the assessment of dominant position in both the markets are being
commonly dealt with in the succeeding paragraphs.
55. On the issue of dominance of OPs in the afore-delineated relevant markets, the
Commission notes that OPs are district TT association (i.e., TSTTA), state level
associations (i.e., MSTTA and GSTTA) and national level TT federation (i.e.,
TTFI) organised in the pyramidal structure governing and regulating the sport of
TT in India from the district to the national level. TTFI (OP-3) being the apex body
for TT activities in India in the pyramidal structure, is governing the entire
activities in relation to the TT events undertaken in India and represent India in
international TT events. The Government of India recognizes National Sports
Federations that are accountable for overall management, direction, control,
regulation, promotion, development and sponsorship for the sports discipline for
which they are recognized by the concerned International Federation. Thus, TTFI
is the authority like any other recognized NSF to make rules, issue code of conduct,
organizing competitions, events and leagues at national level, selection of players,
training of players and organizing and coordinating national/ international events,
etc. Further, it has the affiliation of 34 state units and 25 institutional members.
TTFI, through its affiliated bodies, regulates the game of TT up to district level
through the state TT associations affiliated to it, which have further affiliated
district TT associations.
56. The Commission further notes that as a result of the pyramidal structure for the
governance of TT game, TTFI holds an exclusive mandate to make critical
decisions, including player selection for national representation and requiring
players to prioritize national competitions over other events, TTFI also dominates
57. Hence, in the given ecosystem of TT at the national level, by virtue of its situation
and affiliation, OP-1, OP-2, and OP-4 on behalf of OP 3, enjoy the monopoly
position and are in a position to influence organization of a TT league/ event/
tournament and also power to influence the organization of TT leagues, events, and
tournaments, as well as to deter players from participating in unsanctioned events.
The Commission, therefore, finds no reason to doubt that the OPs hold a dominant
position in the relevant markets as delineated supra.
58. Based on the averments contained in the information, findings of the Investigation
Report, the suggestions/ objections to the Investigation Report filed by the parties,
and other material available on record as well as the contentions raised by the
parties during the hearing, the Commission has identified two issues for
determination in the present matter. The issues and corresponding analysis of the
Commission thereon are as hereunder:
Issue: Whether OPs have abused their dominant position in the relevant markets
in terms of Section 4(2) (a)(i), 4(2)(b)(i) and 4(2)(c) of the Act?
59. The Informant has alleged that the WhatsApp message posted by the General
Secretary of OP-1 on 30.10.2020, addressed to players/ coaches/ clubs/ academies
restricts them from joining/ playing the non-affiliated clubs/organizations and
states that non-adherence to the said direction will result in their suspension/non-
acceptance of their entries in TT Tournaments. The Commission notes that there is
no dispute about the authenticity and veracity of the WhatsApp message dated
60. The Commission notes that the WhatsApp message posted by the General
Secretary of OP-1 on 30.10.2020, addressed to players, coaches, clubs, and
academies, not only restricted them from associating with or participating in non-
affiliated clubs and organizations but also warned of consequences for non-
compliance, such as suspension or rejection of their entries in TT tournaments.
Additionally, the Commission observes that TSTTA continued its restrictive
practices and did not alter its conduct, even after receiving the online petition dated
06.11.2020 and subsequent communications, including a legal notice dated
21.02.2021, from the Informant. Consequently, the Commission concurs with the
DG’s finding that OP-1 is in contravention of the provisions of Section 4(2)(c) of
the Act.
61. The DG found that certain clauses of Rules and Regulations for the conduct of
tournaments – Year 2021-2022 of OP-1 are anti-competitive/ restrictive in nature
as they make it mandatory for a TT club/ academy to get affiliated with TSTTA
for conducting a TT event/ tournament in Mumbai Suburban Revenue District and
hence, contravene Sections 4(2)(a)(i) and 4(2)(b)(i) of the Act. The clauses
identified by the DG are as mentioned below:
“The Club/ Gymkhana/ TT Academy interested in conducting TT Tournament
in Mumbai Suburban Revenue District need to get affiliated with TSTTA
Mumbai by filling up the TSTTA Affiliation Form and paying stated applicable
fees therein.
…….
Chief Referee, Joint/ Assistant Chief Referee, Umpires will be appointed only
by TSTTA-Mumbai for all the tournaments held in its jurisdiction. The expenses
for them are to be borne by the organizers
62. The Commission notes that the clauses mentioned above, appear to serve a
regulatory purpose aimed at ensuring the smooth organisation of TT tournaments
and fostering discipline within the sport. For instance, requiring clubs, gymkhanas,
or academies to affiliate with TSTTA by submitting an affiliation form and paying
the prescribed fees establishes a standardized framework for event organizers.
Similarly, the provision mandating that referees, assistant referees, and umpires be
appointed exclusively by TSTTA ensures consistency in officiating, aligning with
professional standards. These measures beingregulatory in nature, aim to
streamline tournament management and uphold the quality and discipline expected
in organized sports events. In view of the same, the Commission observes that any
organiser of the TT tournament must ensure that the event adheres to official and
international rules, regulations, and point systems to maintain fairness, integrity,
and player safety while fostering the sport's growth. Therefore, all TT events should
align with a long-term vision to cultivate a supportive and sustainable ecosystem
for TT.
63. In view of the above, the Commission is unable to agree with the finding of the DG
that the identified clauses are anti-competitive/ restrictive in nature and contravenes
the Sections 4(2)(a)(i) and 4(2)(b)(i) of the Act.
64. The DG has identified Clauses 22(d) and 22(e) of MSTTA's Scheme/Constitution
dated 28.08.1986 as anti-competitive, as they empower the managing committee to
prohibit unauthorized TT events or tournaments. Furthermore, the DG found that
the MSTTA Veterans Committee vide a WhatsApp message posted in a group, in
October 2021 by Mr. Suhas Dandekar, an office bearer of TSTTA and MSTTA,
advised all the veteran TT players not to participate in 1st National Veterans Sports
66. OP-2, in its objections/suggestions to the DG report, stated that Clause 22(d) has
been removed from the MSTTA scheme. Regarding Clause 22(e), it argued that its
purpose is to uphold the game's integrity by prohibiting actions by members or
players that could harm the game's reputation. This clause aims to maintain
discipline, control misconduct, and preserve the dignity of the game during
tournaments. Regarding the WhatsApp message posted by Mr. Suhas Dandekar,
OP-2 submitted that it sought clarification on the matter and instructed Mr.
Dandekar to refrain from issuing similar communications in the future that could
be interpreted as restrictive or prohibitive for any player’s participation in
tournaments.
68. In view of the above, the Commission agrees with the DG's findings that Clause
22(d) of MSTTA's Scheme/Constitution and the WhatsApp message posted by Mr.
Suhas Dandekar violate Section 4(2)(c) of the Act. However, the Commission does
not find Clause 22(e) to be anticompetitive.
69. The DG concluded that clauses 24C(e), (f), and (h), as well as 27(a) of the MoA of
TTFI, are anticompetitive as they prohibit organizing TT tournaments or events
without authorization from the recognized federation or association. Similarly,
clauses 28(a) and (b) of the MoA of TTFI were also found to be anticompetitive by
the DG, as they restrict players from participating in TT events or tournaments
organized by unaffiliated clubs or associations.
70. OP-3 in its objections/suggestions submitted that alleged clauses are a standard
industry practice and various other NSFs have similar clauses, such as the Board
of Control for Cricket in India, All India Tennis Association, Boxing Federation of
India, National Rifle Association of India, Bowling Federation of India, etc.OP-3
also submitted that by virtue of its designation as the NSF, the TTFI is obligated
to adhere to the statutes of the ITTF and alleged clauses of the TTFI have been
adopted in alignment with the corresponding provisions of the ITTF's statutes.
71. The Commission notes that OP-3, in its submission, stated that the impugned
clauses have either been modified or completely removed, as outlined above.
72. At the outset the Commission notes that being the de facto regulator of the game
of TT, it is reasonable for the TTFI to implement certain restrictions or regulatory
73. The Commission upon examining the impugned clauses of the MoA of OP-3,
observes that these provisions are inherently restrictive, prohibitive, and unfair,
thereby disrupting the competitive structure of the market. These clauses restrict
the organizing of TT tournaments/ events unless authorized by the recognized
federation/ association and unjustifiably prohibit players from participating in
tournaments organized by unaffiliated entities, effectively limiting their
opportunities for professional growth and exposure. Furthermore, such restrictions
create barriers for independent organizers, stifle competition, and deny market
access to players and organizers. Consequently, the Commission finds these
clauses to be anti-competitive and in contravention of Sections 4(2)(a)(i),
4(2)(b)(i), and 4(2)(c) of the Act.
74. The DG has also found that the Public Notice dated 06.07.2022 issued by the TTFI
(OP-3) in the matter of GSL, not only restricted the organization of the GSL by
affiliated state associations without TTFI approval but also discouraged players
from participating in unapproved events, limiting their career prospects.
75. OP-3 contended that the public notice dated 06.07.2022 was issued as a
clarificatory measure in response to a complaint lodged by the Karnataka Table
Tennis Association on 21.06.2022 concerning GSL’s alleged misrepresentation as
an affiliated tournament of TTFI. Considering the implications of such
misrepresentation on all stakeholders, TTFI deemed it appropriate to issue the
76. The Commission considered the said Public Notice and partially concurs with OP's
argument that the notice was issued as a clarificatory measure in response to
address the misrepresentation of the GSL as an affiliated tournament of TTFI. The
notice was ostensibly intended to dispel any misconceptions and assist stakeholders
in making informed decisions. However, the Commission observes that, rather than
limiting itself to clarifying the approval status of the GSL event, TTFI took
additional steps to actively discourage participation by stating that individuals
participating in the GSL event would do so at their own cost, risk, and peril.
Considering that robust player participation is critical to the success of any TT
event, it is evident that TTFI effectively imposed a restriction on the organization
of the GSL event by affiliated state associations without obtaining prior approval.
In light of the above, the Commission concurs with the DG’s findings and
77. The DG found that clause 25 of the GSTTA’s By-laws, along with the mandated
undertaking in the player registration form (used until 2022), restricted TT players
from participating in unrecognized tournaments. Additionally, GSTTA's circular
dated 15.02.2021, issued to affiliated district units and the Gujarat State Veterans
Table Tennis Committee (GSVTTC), prohibited players and technical officials
from participating in the 4th Gujarat State Masters Games. Therefore, such clause
and conduct of GSTTA restricts TT players from participation in ‘unauthorised
tournaments’, violates Section 4 of the Act.
78. OP-4 in its written submission has submitted that the Constitution of the GSTTA,
including the contravening Clause 25, had been picked and modelled after similar
provisions contained in the byelaws of the TTFI and despite the existence of such
a Clause, it would be pertinent to reiterate that the no action has been taken against
any player under Clause 25 for having participated in an unauthorized tournament.
OP-4 also submitted that Player Registration Forms (as duly noted in Para 5.15.3
of the DG Report) had been used only for a period of 5 years and had been
discontinued in 2022.
79. The Commission considered the impugned clauses of GSTTA Constitution and
noted that “Clause 25 (a) No player of the GSTTA shall take part in any open
tournament which has not been approved or prohibited by GSTTA” unjustifiably
prohibit players from participating in tournaments organized by unaffiliated
entities, thereby limiting their opportunities for professional growth.
80. The Commission also observed that mandated undertaking in the player
registration form (used until 2022) was inherently restrictive which is clear from
82. The Commission upon consideration of the GSTTA's circular dated 15.02.2021
observed that OP-4, through this circular, declared the 4th Gujarat State Masters
Games as unauthorized and prohibited any player or technical official affiliated
with district associations from participating in the event. The Commission noted
that these restrictions effectively prevent TT players from participating in
tournaments not recognized by GSTTA and make it unfeasible for any entity to
83. In view of the foregoing, the Commission concurs with the findings of the DG and
holds that OP-4, has contravened the provisions of Sections 4(2)(a)(i), 4(2)(b)(i),
and 4(2)(c) of the Act.
84. The Commission noted from the submission of OP-4 that impugned clause of
GSTTA Constitution has been dropped and the letter dated 15.02.2021 in respect
of participation of players in un-authorized events, has been withdrawn.
Issue: Whether the OPs are involved in activities in contravention of Section 3(1)
read with Section 3(4) of the Act?
85. The DG found that the relationship between the OP-1 and its registered players,
and between the OP-1 and the TT clubs/ academies within the Mumbai Suburban
District are vertical in nature. The WhatsApp advisory dated 30.10.2020 was found
by DG to cause creation of barriers to new entrants in the market, driving existing
competitors out of the market and foreclosure of competition by hindering entry
into the market to an extent which amounts to contravention of Section 3(4) of the
Act.
86. OP-1 submitted that violations under section 3(4) of the Act are to be assessed
under the ‘rule of reason’ test. It has been submitted that apart from the complaint
received from the Informant/ TTFSL, there is no evidence to suggest that the
advisory issued by OP-1 has resulted in the creation of any entry barrier when it
comes to the organization of TT in the Suburban district of Mumbai. It is further
submitted that the implicit restriction which was made applicable on Informant/
TTFSL through the complaint was ‘objectively justified’ as there was an
apprehension of ‘suspected malpractice’ in the conduct of the matches. As soon as
87. The Commission agrees with the DG's conclusion regarding the relationship
between TT players and OP-1, considering it as a vertical relationship. In this case,
the relationship between TT players and OP-1 is considered vertical because OP-1
likely provides services or resources (such as training or event organization) to the
players, thus creating a supply chain-like dynamic where OP-1 plays a role in the
players' development or participation in tournaments. However, the Commission
disagrees with the DG's assertion that the relationship between OP-1 and the TT
clubs or academies within the Mumbai Suburban District is also vertical because
these entities are on the same level and engage in direct competition rather than in
a vertical relationship.
88. It is further noted that the WhatsApp message posted by OP-1 on 30.10.2020,
addressed to players/ coaches/ clubs/ academies restricting them from joining/
playing the non-affiliated clubs/organizations and stating that non-adherence to the
said direction will result in their suspension/non-acceptance of their entries in TT
Tournaments amounts to restraints that are in the nature of exclusive distribution
and refusal to deal as defined in Section 3(4)(c) and 3(4) (d) of the Act. These
directions create entry barriers, foreclose competition and restrict opportunities
available to TT players. The said restrictions are likely to have appreciable adverse
effect on competition in terms of factors contained in Section 19 (3) of the Act. The
Commission is thus, of the view that OP-1 has contravened Sections 3(4)(c) and
3(4)(d) of the Act read with Section 3(1) of the Act.
89. The Commission observed that the Informant submitted an additional affidavit of
evidence dated 02.08.2023 against the NDTTA, alleging further contraventions of
the provisions of the Act. These allegations were also raised by the Informant
during the final hearing. The Commission noted that NDTTA is not a party to the
current proceedings, and the evidence was presented after the conclusion of the
investigation and submission of the DG's report. Moreover, the Commission found
90. In view of the foregoing, the Commission is of the considered opinion that OPs
have violated the various provisions of Sections 3(4) and 4 of the Act, as detailed
above.
ORDER
91. OPs are found in contravention of the provisions of Section (4)(2)(a)(i), 4(2)(b)(i),
and 4(2)(c) of the Act for the reasons adumbrated in this order. Additionally, OP-
1 is also found in contravention of Sections 3(4)(c) and 3(4)(d) of the Act.
Accordingly, OPs are hereby directed to cease and desist from indulging in future
in the conduct which has been found to violate the provisions of the Act.
92. As regards imposition of monetary penalty, the Commission notes that OPs have
undertaken corrective measures to address the concerns raised during the
investigation. Restrictive communications, such as the WhatsApp advisory dated
30.10.2020 by OP-1 and the circular dated 15.02.2021 by OP-4, which are deemed
anti-competitive were withdrawn. Furthermore, the OPs have amended or removed
restrictive clauses in their MoAs/Constitution/Byelaws including provisions that
prohibited participation in unauthorized tournaments and imposed penalties on
players and associations. Additionally, OP-3 issued a clarificatory circular advising
its affiliates to avoid penalizing participants in unaffiliated events, reflecting a shift
towards fostering open competition.
93. Considering these aspects, the Commission is of the considered view that a cease-
and-desist order under Section 27 of the Act would serve the ends of justice in the
matter and accordingly, the Commission refrains from imposing any monetary
penalty upon the OPs. It may, however, be noted that any such future conduct of
Sd/-
(Ravneet Kaur)
Chairperson
Sd/-
(Anil Agrawal)
Member
Sd/-
(Sweta Kakkad)
Member
Sd/-
(Deepak Anurag)
Member
New Delhi
Date: 12/12/2024