Volume 2 Issue 7

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CCI can investigate anti-competitive conduct in lotteries: Supreme Court

Date of News: 


Date of Publication: 


Unique ID:


Name of the Author: 

Aryan Sharma

Field of Law: 

Civil Law

Content of News:

On 20th December 2011 Mizoram's Government invited proposals from lottery distributors and to distribute the State Lotteries, in accordance with Mizoram Lotteries (Regulation) Rules, 2011. It was the responsibility of the winning bidder to organize, market, promote, conduct, and conduct the lottery online and through paper. A total of four companies/partnership businesses were selected by the Mizoram Government.A complaint was made to the Competition Commission of India seeking an investigation into the State Lottery run by the Government of Mizoram. CCI exercised there power under Section 26(1) as they found evidence. The CCI pointed out that the successful bidders violated Section 3(1) and also Section (3). The High Court set aside the report and stated that the lottery business is a form of gambling and would not fall under the purview of the Competition Act. The appellant said that they are only concerned about the possibility of rigging in the process. It was clarified that since the Competition Act and Regulation Act have no overlap, CCI is free to consider the particulars of the tender process that could show evidence of anticompetitive behavior. The reference was made to CCI V Bharti Airtel. The respondents referred to Sunrise Associates v Govt of NCT Delhi The contention was that lottery tickets are actionable claims and therefore cannot be considered "goods�. The Supreme Court opined The lotteries system can continue to be regulated by the Regulation Act but CCI cannot be prevented from investigating if there is an element of anti-competitive behavior in the tendering process, especially when the State Government is involved in lotteries. The court also defined Section 2(u) �Service� according to the Court, "services of any description" are those made available to potential users, the selling agent is a service provider.