Microsoft Faces Competition Commission of India Over Alleged Abusive Conduct

Strategic Insights -

Microsoft Corp, a global software major, has been accused of abusing its dominant market position by a law firm, Singhania & Partners. The complaint alleges that Microsoft signed an agreement to sell software at a certain price but later attempted to raise the price and force the law firm to purchase a more expensive license. The law firm had placed an order for MS operating systems and MS Office software, but Microsoft unexpectedly changed its pricing policy, increasing the cost by 100%. The firm was initially asked to pay 50% of the total price as an advance, only to be informed that they would have to pay double the price for a volume license. This change in pricing strategy has been deemed discriminatory and has led to the complaint under Section 4 of the Competition Act 2002.

Key Takeaways:

  • Microsoft has been accused of abusing its dominant market position by allegedly signing an agreement to sell software at one price and then raising the price without notice.
  • The law firm, Singhania & Partners, claims that Microsoft changed its pricing policy from OEM (Original Equipment Manufacturer) licenses to volume licenses, which would cost the firm double the price.
  • Microsoft is alleged to have practiced differential and discriminatory pricing, suggesting prices according to the size of the company.
  • The Competition Commission of India (CCI) has received the complaint and is yet to take a view on it.
  • The case is being represented by Seth Dua & Associates.

Statistics:

  • 50%: The percentage of the total price that the law firm was initially asked to pay as an advance.
  • 100%: The increase in cost that the law firm had to pay due to Microsoft's change in pricing policy.
  • 2002: The year in which the Competition Act was enacted.
  • Section 4: The section of the Competition Act under which the complaint has been filed.

Sources:

  • Asia Pulse (Sept 20)
  • PTI
  • Singhania & Partners
  • Microsoft India
  • Seth Dua & Associates
  • Competition Act of 2002