The Competition Commission of India (CCI) has issued a cease-and-desist order against the Table Tennis Federation of India (TTFI) and its affiliates for the abuse of dominant position in the market. The order stated that the TTFI and its affiliates indulged in anti-competitive conduct, including denying access to table tennis players for events.
The case pertains to the information filed by the TT Friendly Super League Association alleging that table tennis players are denied access to events on the basis of a WhatsApp notice issued by the general secretary of the Suburban Table Tennis Association (TSTTA) and restrictive clauses in the TTFI’s memorandum of association (MoA).
The competition watchdog had referred the matter to the director general (investigation) which found out that the WhatsApp advisory issued in October 2020 by TSTTA was restrictive for organising TT events and it also prevented the players from taking part in the unauthorised TT events.
The antitrust regulator also found out that TTFI and its affiliates, through actions such as issuing WhatsApp advisories, public notices and incorporating certain anti-competitive clauses in their bye-laws, restricted the organisation of table tennis tournaments and sought to prevent players from participating in the events, resulting in violation of certain provisions of Sections 3(4) and 4 the Act.
“The intersection of sports governance and antitrust law remains a contentious issue that highlights the delicate balance between promoting fair competition and preserving the unique characteristics of sports. The sports governing bodies are facing increased scrutiny regarding their regulations and practices. The CCI, in the past, have penalised several sports bodies for indulging in restrictive practices,” said Vaibhav Choukse, partner (competition law) at JSA.
Though the order is being issued under Section 27 of the Competition Act, the CCI has not imposed any monetary penalties on TTFI and affiliates because the erring parties undertook corrective measures to address concerns, including withdrawing anti-competitive communications, removing restrictive clauses from the governing documents and issuing advisories for promoting open competition.
Under Section 27, the CCI can impose a financial penalty of upto 10% of the average turnover for the three preceding financial years on the erring parties.
“While acknowledging the violations, the CCI opted not to impose monetary penalties. This decision underscores the CCI’s focus on ensuring compliance and fostering open access in sports governance without unduly penalising entities willing to reform,” said Ketan Mukhija, senior partner at Burgeon Law.