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002A

4TH ANNUAL JINDAL TECHNOLOGY LAW & POLICY MOOT COURT COMPETITION, 2019

BEFORE

THE HONOURABLE SUPREME COURT OF INDRAHAAR

MEMORIAL ON BEHALF OF THE APPELLANTS

APPEAL FILED UNDER SECTION 53-T OF THE COMPETITION ACT, 2002

APPEAL NO. ____/2019

RHINE VALLEY CORPORATION…………………………………………….…APPELLANT 1

RHINE VALLEY VAULT SERVICES……………………………………………APPELLANT 2

VERSUS

SWADESHI TECHNOLOGY PVT. LTD……………………………………….... RESPONDENT 1

CLUBBED WITH

SLP NO. ____/2019

RHINE VALLEY CORPORATION…………………………………………….…APPELLANT 1

RHINE VALLEY VAULT SERVICES……………………………………………APPELLANT 2

VERSUS

CENTRE FOR NETIZENS OF INDRAHAAR……………………………………..RESPONDENT 2


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TABLE OF CONTENTS

▪ INDEX OF AUTHORITIES……………………………...…………………………...……….3
➢ LIST OF CASES………………………………………………………...…………….3
➢ STATUTES………………………………………………………………………...…7
➢ BOOKS………………………………………………………………………………8
➢ LEXICONS……………………………………………………………………………9
➢ ARTICLES……………………………………………………………………………9
➢ LEGAL DATABASES………………………………………………………………….9
▪ LIST OF ABBREVIATION………………………………………………………………..…10

▪ STATEMENT OF FACTS……………………………………………………………………11

▪ STATEMENT OF JURISDICTION…………………………………………………………...13

▪ QUESTIONS PRESENTED ……………………………………………………………….…14

▪ SUMMARY OF ARGUMENTS………………………………………………………………15

▪ ARGUMENTS ADVANCED………………………………………………………………….17

ISSUE I: WHETHER CCI HAS ERRED IN HOLDING THE JURISDICTION OVER THE MATTER?............17

[A]INFORMATION DOES NOT COME IN GOODS AND SERVICES UNDER THE AMBIT OF
COMPETITION ACT, 2002…………………………………………………………………..17
[A.1] Information is not a good…………………………………..……………………18
[A.2] Information is not a service……………………………………………………...18
[B]THERE DOES NOT EXIST A PRIMA FACIE CASE……………………………………………..19
[C]ALTERNATE REMEDIES ARE NOT EXHAUSTED……………………………………………...20
[C.1] Most appropriate forum…………………………………………………………21

ISSUE II: WHETHER PATENT SHOULD BE GRANTED TO RVV? …………………………….…...21

[A]JUDICIAL OVERREACH BY SUPREME COURT………………………………………………..21

[B] COMPUTER IMPLEMENTED TECHNOLOGY BY RVV IS A PATENTABLE SUBJECT


MATTER………………….............………………………………………………………...22

[C]COMPUTER IMPLEMENTED TECHNOLOGY OF RVV IS NOVEL……………………………...23

[D] COMPUTER IMPLEMENTED TECHNOLOGY – RVV’s INVENTIVE STEP……………………...24

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[E]INDUSTRIAL APPLICABILITY OF THE COMPUTER IMPLEMENTED TECHNOLOGY…………….25

ISSUE III: WHETHER RVV & RHINE VALLEY HAVE VIOLATED SECTION 3 OF THE COMPETITION
ACT?.............................................................................................................................................26

[A]RVV’S AGREEMENT AS AN EXEMPTION UNDER SECTION 3(5) …………………………....26


[A.1] Database of RVV is copyrightable........................................................................26
[A.2] Reasonable conditions imposed in the disputed agreement..................................27
[B]NO ACTION OF RVV & RHINE VALLEY SHOWCASES AN ANTI-COMPETITIVE CONDUCT…...28
[B.1] No exclusive supply agreement between RVV & Rhine Valley or any other
MNC……………………………………………………………………………………28
[B.2] No exclusive distribution agreement between RVV & Rhine Valley or any other
MNC……………………………………………………………………………………29
[B.3] No refusal to deal by RVV to Swadeshi-Tech ………………………………..….29
[C] NO APPRECIABLE ADVERSE EFFECT ON COMPETITION…………………………………….30

ISSUE IV: WHETHER RVV & RHINE VALLEY HAVE VIOLATED SECTION 4 OF THE
COMPETITION ACT?.....................................................................................................................31

[A] NO VIOLATION OF SECTION 4(2) (E) OF THE COMPETITION ACT………………………….31


[A.1] Relevant markets of RVV & Rhine Valley………………………………………..32
[A.2] No favourable treatment by RVV to Rhine Valley……………………………….33
[A.3] Markets of RVV & Rhine Valley are not associated……………………………..34
[B] NO DENIAL TO MARKET ACCESS ON PART OF RVV………………………………………35
[B.1] Specific performance of the contract is fulfilled by RVV …………......................35
[B.2] Personal data is not an essential facility for Swadeshi-tech…………………….36

ISSUE V: WHETHER RVV HAS VIOLATED PRIVACY OF THE CITIZENS OF INDRAHAAR? ………...37

[A]THERE IS NO LAW REGULATING DATA PRIVACY OF CITIZENS OF INDRAHAAR………….....37

[B] RVV HAS COMPLIED WITH THE NORMS OF IT (REASONABLE SECURITY PRACTICES
&PROCEDURE AND SENSITIVE PERSONAL DATA OR INFORMATION) RULES, 2011………..38
[B.1] RVV is not negligent in maintaining reasonable security for data protection…..38
[B.2] RVV through Rhine valley had taken prior consent…………………………..….38

▪ PRAYER………………………………………………………………………………40

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INDEX OF AUTHORITIES

• LIST OF CASES

[A] SUPREME COURT CASES

SR. NO. CASE LAW NAME PAGE

1. Punjab Urban Planning and Development Authority v. Mandeep Singh & 17


Others, (2016) 7 SCC 571.
2. Kamlesh Kohli & Others v. Escotrack Finance & Investment Limited & 17
Others, (2000) 1 SCC 324.
3. J. Jaylalitha v. Union of India, (1999) 5 SCC 138. 18

4. State of Bombay v. RMD Chamarbaugwala, (1957) AIR 699 SC. 19

5. Rohit Pulp & Paper Mills Ltd. v. Collector of Central Excise, (1991) AIR 19
754,761 SC.
6. Ahmedabad Pvt. Primary Teachers Association v. Administrative Officer, 19
(2004) 1 SCC 755.
7. CCI v. Bharti Airtel Ltd. &Ors, 2018 SCC Online SC 2678. 20

8. Eastern Book Company v. D.B Modak, (2008) 1 SCC 1. 27

9. CCI v. Bharti Airtel ltd., (2019) 2 SCC 521. 21

10. Bishwanath Prakash Radhey Sham v. Hindustan Metal Industries, (1979) 24


2 SCC 511.
11. Novartis AG v. Union of India & Others, (2013) 6 SCC 1. 24

12. Monsanto Technology LLC v. Nuziveedu Seeds Ltd., 2019 SCC Online 25
SC 25.
13. Tata Teleservices ltd. v. BSNL ltd.& ors, (2008) 10 SCC 556. 25

14. CCI v. Fast Way Transmission Pvt. Ltd., (2018) 4 SCC 316. 31

[B] HIGH COURT CASES


SR. NO. CASE LAW NAME PAGE

1. Bombay Agarwal co. v. Ramchand Diwanchand, AIR 1953 Nag 154. 21

2. Lallubhai Chakubhai Jariwala v Chimanlal Chunilal and Co, 1935 SCC 23


Online Bom 20.
3. Novartis AG V. Mehar Pharma & Ors., 2004 SCC Online Bom 1063. 24,25

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4. Burlington Home Shopping Ltd, v. Rajnish Chibber, (1995) 6 DLT61. 26

5. Govindan v. Gopalakrishna, (1955) AIR391 (Mad.) (India). 26

6. Tech Plus media Pvt. Ltd. v. Jyotijanda & Ors., 2014 SCC Online Del 26
1819.
7. Diljeet Titus v. Alfred A. Adebare, (2006) 130 DLT 330. 27

8. The State of Madras v. Ramalingam and Co, AIR 1956 Mad 695. 34

[C] CCI, NCLAT & OTHER TRIBUNAL CASES


SR. NO. CASE LAW NAME PAGE
1. Vinod Kumar Gupta v. Whatsapp Inc., (2017) 82 taxmann.com 272 (CCI). 21
2. Council for Scientific & Industrial Research v. Hindustan Lever Ltd., 2015 25
SCC Online IPAB 107.
3. K. Sera Sera Digital India Ltd. v. Pen India Ltd, [2017] 83 taxmann.com 27
11(CCI).
4. Nandu Ahuja v. Competition Commission of India, [2014] 42 27
taxmann.com 487 (CAT).
5. FICCI Multiplex Association of India Federation House v. United 27
Producers/Distributors Forum, 2011 SCC Online CCI 33.
6. Indiacan Education Pvt. Ltd. v. Aldine Ventures Pvt. Ltd, [2016] 76 27
taxmann.com 140 (CCI).
7. Keerthy krishanan v. Bharat Petroleum Corp. Ltd. (BPCL) Mumbai, 2013 28
SCC Online CCI 27.
8. Vishal Pande v. Honda Motorcycles & Scooters India Pvt. Ltd., [2018] 92 28,29
taxmann.com 59 (CCI).
9. JHS Svendgaard Laboratories Ltd. v. Procter & Gamble Home Products 28
Ltd, [2014] 41 taxmann.com 363 (CCI).
10. NK Natural Foods Ltd. v. Akshya Ltd, [2014] 44 taxmann.com 216 (CCI). 29
11. Dilip Modwil v. Insurance Regulatory & Development Authority, [2014] 29
51 taxmann.com 308 (CCI).
12. Shamsher Kataria v. Honda Siel Cars India Ltd, [2015] 59 taxmann.com 29,30
419 (CCI).
13. Ghanshyam Daas Vij v. Bajaj Corp. Ltd, [2016] 68 taxmann.com 63 (CCI). 29

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14. Alkem Laboratories v. CCI, [2016] 70 taxmann.com 48 (CAT). 29


15. Cupid Ltd. v. Ministry of Health & Family Welfare, Government of India, 30
[2019] 101 taxmann.com 369 (CCI).
16. Mohit Manglani v. Flipkart India Pvt. Ltd, [2015] 57 taxmann.com 57 30
(CCI).
17. Counfreedise v. Times Group India, [2018] 97 taxmann.com 290 (CCI). 30
18. G. Krishna Moorty v. Karnataka Films Chamber of Commerce, [2018] 97 30
taxmann.com 419 (CCI).
19. Sudeep PMV v. Kerala Chemist & Druggist Association, [2017] 87 30
taxmann.com 234 (CCI).
20. Schott Glass India Pvt Ltd v. CCI, [2014] 45 taxmann.com 157 (CAT). 31
21. XYZ v. REC Power Distribution, 2015 SCC Online CCI 8. 31,33
22. Pankaj Agarwal v. DLF Gurgoan Home Developers Pvt. Ltd, 2015 Comp 31
LR 728 (CCI).
23. GKB Hi Tech Lenses Pvt. Ltd. v. Transition Optical India Pvt. Ltd, Case 31
No. 55/2012 (CCI).
24. Om Dutt Sharma v. Competition Commission of India., 2015 Comp LR 31
529 (Comp AT)
25. Jindal Steel & Power Ltd. v. Steel Authority of India Ltd, (2012) 107 CLA 32
278 (CCI).
26. Ess Cee Securities Pvt. Ltd. v. Competition Commission of India, [2017] 32
77 taxmann.com 89 (CAT).
27. Dr. Heeranandani Hospital v. CCI, [2015] 65 taxmann.com 65. 32
28. M/S Maharastra State Power Generation Co. Ltd. v. M/s. Mahanadi 32
Coalfields Ltd. &ors, 2013 Comp LR 910 (CCI).
29. Saint Gobain Glass India Ltd. v. Gujrat Gas Company Ltd., 2015 Comp 32
LR 431 (CCI).
30. India Trade Promotion Organization, Pragatibhavan, New Delhi v. CCI & 32
Ors, 2016 SCC Online Comp AT 452.
31. Pan India Infra Projects Pvt. Ltd. v. CCI, [2015] 57 taxmann.com 388 33
(CAT).
32. Bharti Airtel Ltd. v. Reliance Industries Ltd, [2017] 82 taxmann.com 33,34
43(CCI).

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33. Shri v. Ramchandra Reddy &Ors. v. HDFC bank &ors., (2011) CCI 28. 33
34. Financial Software & Systems Pvt. Ltd. v. M/S ACI &ors, Case 52/2013, 33
(CCI).
35. MCX Stock Exchange Ltd. v. National Stock Exchange of India Ltd, 34
[2011] 13 taxmann.com 110 (CCI).
36. Just Ticket Pvt. Ltd. v. Big Tree Entertainment Pvt. Ltd, [2017] 80 34
taxmann.com 19 (CCI).
37. Matrimony.com v. Google India Pvt. Ltd, (2018) CCI 1. 34
38. Turbo Aviation Pvt. Ltd. v. Bangalore International Airport Ltd, [2016] 66 34
taxmann.com 43 (CCI).
39. Hemant Sharma v. AICF, [2018] 96 taxmann.com 35 (CCI). 35
40. Arshiya Rail Infrastructure Limited (ARIL) v. Ministry of Railways, 36
[2012] 27 taxmann.com 25 (CCI).

[D] FOREIGN CASES

SR. NO. CASE LAW NAME PAGE


1. Force India Formula One Team Ltd v. 1 Malaysia Racing Team SDN BHD, 18
[2012] RPC 29 [378].
2. Stephen John Coogan v. News Group Newspapers Ltd. & Glenn Michael 18
Mullcaire, 392 ALL ER 74 (2012, Court of Appeal).
3. Angus Robertson v. George Day, 5 AC 63, 69 (1879). 19
4. Boardman v Phipps, [1967] 2 AC 46. 18
5. American Cyanamid v. Ethicon Ltd., 2 WLR 316, 323 (1975). 19
6. Deutsche Telekom v. European Commission, C-280/08 P, Judgment dated 20
14.10.2010.
7. In Re DoubleClick Inc. Privacy Litigation, No. 00-0641, 2002 U.S. Dist. 38
LEXIS 270999 (S.D.N.Y. 32rd May, 2002).
8. Lantana Limited v. Comptroller General of Patents, [2014] EWCA Civ 22
1463.
9. Vicom/Computer related invention, (Decision T 208/84) [1987] 2 EPOBA 23
74.
10. Koch and Sterzel, In re, 1988 EPOR 72. 23

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11. IBM/Computer Programs II, (Decision T 935/97) [1999] RPC 861. 23


12. LJ Mullard v. Philip Co., (1953) 52 RPC 33 at 287. 25
13. National Society of Professional Engineers v. United States, 435 US 679 30
(1978).
14. United States Football League v. National Football league, 842 F.2d 1335 33
(1988).
15. Tetra Pak International SA v. Commission, (1996) ECR I-595. 34
16. A E Farr Ltd. v. The Admiralty, [1953] 2 All ER 512. 35
17. Gardiner v. Moore, [1969] 1 QB 55 734. 35
18. Oscar Bronner GmbH & Co. Kg v. Mediaprint Zietung (case c-7/97 [1999] 35
4 CMLR 112).
19. Twin Labs v. Weider Health & Fitness, 900 F.2d 566, 570 (2d Cir. 1990). 36
20. MCI Communications Corp. v. AT&T. 7 FCC Rcd. 807 (1992). 36

• STATUTES
SR. NO. NAME OF STATUTE

1. Competition Act 2002, No 12, Acts of Parliament, 2002.

2. The Patents Act, 1970, NO. 39, Acts of Parliament, 1970.

3. Copyright Act, 1957, No. 14, Acts of Parliament, 1957(India).

4. Information Technology Act, 2000, No. 27, Acts of Parliament, 2000.

5. Information Technology (Reasonable Security Practices & Procedures & sensitive


Personal Data or Information) Rules, 2011.

6. Sales of Goods act, 1930, No. 13, Acts of Parliament, 1930.

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• BOOKS

[A] COMPETITION LAW

SR. NO. PARTICULARS

1. S.M DUGAR, GUIDE TO COMPETITION LAW (ed. 6, LEXIS NEXIS).

2. DR. S.C. TRIPATHI, COMPETITION LAW (ed. 2017, CENTRAL LAW PUBLICATIONS).

3. DR. AVATAR SINGH, COMPETITION LAW, (ed. 2012, EASTERN BOOK COMPANY).

4. VERSHAVAHINI, INDIAN COMPETITION LAW, (ed. 2016, LEXIS NEXIS).

5. ABIR ROY, COMPETITION LAW IN INDIA (ed. 2016, KLUWER LAW INTERNATIONAL).

6. D.P MITTAL, COMPETITION LAW & PRACTICE (ed. 3, TAXMANN).

7. R. WHISH & DAVID BAILEY, COMPETITION LAW (ed.7, OXFORD UNIVERSITY PRESS).

[B] INTELLECTUAL PROPERTY RIGHTS

SR. NO. PARTICULARS.

1. JAI SHRI WATAL, IP RIGHTS (ed. 2012, OXFORD UNIVERSITY PRESS).

2. ELIZABETH VERKEY, LAW OF PATENTS (ed. 2010, EASTERN BOOK COMPANY).

3. ANAND PADMANABHAN, INTELLECTUAL PROPERTY RIGHTS (ed. 2012, LEXIS NEXIS).

4. MB RAO & M. GURU, PATENT LAWS (ed. 2010, KLUWER LAW INTERNATIONAL).

[C] CONSTITUTIONAL LAW & INTERPRETATION OF STATUTES

SR. NO. PARTICULARS.

1. M.P JAIN, INDIAN CONSTITUTION LAW (ed. 8, LEXIS NEXIS).

2. D.D BASU, COMMENTARY ON THE CONSTITUTION OF INDIA (ed. 9, LEXIS NEXIS).

3. ARVIND P. DATAR, CONSTITUTION OF INDIA, (ed. 2, LEXIS NEXIS).

4. JUSTICE G.P SINGH, INTERPRETATION OF STATUTES, (ed. 11, LEXIS NEXIS).

5. MAXWELL, INTERPRETATION OF STATUTES, (ed. 12, Sweet & Maxwell).

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• LEXICONS
SR. NO. PARTICULARS

1. BRYAN A. GARNER, BLACK’S LAW DICTIONARY (ed. 9, WEST GROUP).

2. P. RAMANATHA AIYAR, ADVANCED LAW LEXICON, (ed. 5, LEXIS NEXIS).

• ARTICLES
SR. NO. PARTICULARS

1. Jay Modrall, Big data and algorithms: Focussing the discussion, Oxford University
(Jan 15, 2018), 73 OX LJ 38 (2018).
2. Ariel Ezrachi, EU Competition Law Goals and the Digital Economy, 17 Ox. L.S. 733
(2018).

3. John Kleinig, The Nature of Consent in The Ethics of Consent- Theory and Practice
(Alan Wertheimer and Franklin Miller (eds.), Oxford University Press, 2009).
4. Inge Graef, Data Portability and Data Control: Lessons for an Emerging Concept in
EU Law, 19 German LJ 1359 (2018).

• LEGAL DATABASES

SR. NO. PARTICULARS

1. HEINONLINE

2. KLUWER

3. LEXIS NEXIS

4. MANUPATRA

5. SCC ONLINE

6. WEST LAW

7. TAXMANN

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LIST OF ABBREVIATIONS

SR. NO. ABBREVIATION EXPANSION

1. § Section

2. ¶ Paragraph

3. & And

4. AIR All India Reporter

5. Anr. Another

6. SCC Supreme Court Cases

7. CCI Competition Commission of Indrahaar

8. NCLAT National Company Law Appellate Tribunal

9. SC Supreme Court

10. EU European Union

11. RVV Rhine Valley Vault Services

12. Comp AT Competition Appellate Tribunal

13. Comp LR Competition Law Review

14. Ed. Edition

15. HC High Court

16. Hon’ble Honourable

17. IPAB Intellectual Property Appellate Board

18. UOI Union of India

19. v. Versus

20. u/s Under Section

21. Ltd. Limited

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STATEMENT OF FACTS

INTRODUCTION: Indrahaar is a republic in South Asia, whose laws are pari materia with the

laws of India, with the limited exceptions laid out in this Proposition.

PARTIES TO THE CASE: RHINE VALLEY & RHINE VALLEY VAULT SERVICES (RVV): Rhine

Valley is a Frankburg (EU) based company which acts as an Online Market Place (“OMP”) for

third party retailers, having a market share of 45% (as of 2019). Rhine Valley has 49%

shareholding in its associate company, Rhine Valley Vault Services (“RVV”),whose 51%

shares are held by Mr. Leon Chef(CEO of RVV, MD of Rhine Valley).Mr. Chef, with team of

computer engineers and data scientist, developed a computer implemented technology

consisting of (1) a computing platform, and (2) an algorithm, over which RVV secured its

patent in 2013 in Frankburg and filed a patent in India. While RVV provides the infrastructure

services to 15 different companies, these companies feed their own information into the

databank, including individual contact details, bank account details, travel records, search

history and personal preferences. This information is kept highly confidential, and is available

only to those companies which contribute to the database.

SWADESHI TECHNOLOGY PVT. LTD.(“SWADESHI-TECH”): It is an ecommerce player, having

market share of 35% (as of 2018) in the market of OMPs in Indrahaar, with Rhine Valley being

its main competition.

FACTUAL BACKGROUND: In December 2017, Swadeshi-Tech contracted with RVV on a

monthly basis at the rate of USD 50,000 per month- “RVV agrees to provide Swadeshi-Tech

with all relevant contact details of its customers as available in its databank including, but not

limited to, telephone numbers, e-mail addresses, and physical delivery addresses”, with the

condition that RVV is at liberty to revise the rate at its own discretion, In March, 2018

Swadeshi Tech, learns that RVV had other information regarding customers such as search

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history and personal preferences, after a press release by DG Competition of European

Commission.

JUDICIAL BACKGROUND: COMPLAINT TO CCI: In August 2018, Swadeshi-Tech complained

that Rhine Valley, through RVV, had violated provisions of the Competition Act, specifically,

§3(4)(d), §3(4)(b), §3(4)(c) denial of access to RVV’s databank and §4(2)(e).

Contemporaneously, the Centre for Netizens of Indrahaar (“CNI”) approached CCI for a

violation of data privacy by RVV.

CONTENTIONS OF RVV AND RHINE VALLEY: They contended that (i) the confidential nature

of information comes under the exception of §3 (ii) the information in the databank is not a

good or service under the ambit of the Competition Act, but is a result of patented technology –

accordingly, the CCI does not have the jurisdiction to hear the matter, (iv) there is no

legislation in place in Indrahaar governing privacy and data security related concerns.

CCI’S JURISDICTION: CCI confirmed its jurisdiction and gave the decision in favour of RVV.

SWADESHI-TECH AND CNI’S APPEAL TO NCLAT: NCLAT confirmed CCI’s jurisdiction, but

held that the CCI erred in interpreting the scope of the Competition Act narrowly.

APPEALS: Rhine Valley, RVV, and the CCI approached the Supreme Court of Indrahaar (SC)

to decide on the merits of the matter. Also, CNI files a Special Leave Petition U/A 136 of the

Constitution of Indrahaar for deliberation on the privacy and data security related concerns.

SC has decided to club the appeals and also (1) withdraw the application of patent by RVV,

pending before the Indrahaar Patent Office, and (2) decide on the question of the grant of

patent to RVV.

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STATEMENT OF JURISDICTION

APPEAL- I

The appellants i.e. RVV & Rhine Valley have approached the Hon’ble Supreme Court of

Indrahaar invoking its appellate jurisdiction under §53T of the competition act of Indrahaar.

APPEAL- II

The respondent-II i.e. CNI have approached the Hon’ble Supreme Court of Indrahaar under

Article 136 of the Constitution of Indrahaar.

CLUBBING OF APPEALS

The Hon’ble Supreme Court under the inherent power has clubbed the appeals together under

order “LV”, Rule 5 of the Supreme Court Rules, 2013.

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QUESTIONS PRESENTED

APPEAL - I

~ISSUE I~

WHETHER CCI HAS ERRED IN HOLDING THE JURISDICTION OVER THE MATTER?

~ISSUE II~

WHETHER PATENT SHOULD BE GRANTED TO RVV?

~ISSUE III~

WHETHER RVV & RHINE VALLEY HAVE VIOLATED SECTION 3 OF THE COMPETITION

ACT?

~ISSUE IV~

WHETHER RVV & RHINE VALLEY HAVE VIOLATED SECTION 4 OF THE COMPETITION

ACT?

APPEAL - II

~ISSUE V~

WHETHER RVV HAS VIOLATED PRIVACY OF THE CITIZENS OF INDRAHAAR?

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SUMMARY OF ARGUMENTS

~ISSUE I~

WHETHER CCI HAS ERRED IN HOLDING THE JURISDICTION OVER THE MATTER?

It is humbly submitted before the Hon’ble Supreme Court of Indrahaar that CCI has no

jurisdiction in the instant matter because information in the databank is not a good or service.

Since, information is not a property, it is not covered by the definition of ‘goods’ whereas it is

also not a ‘service’ because definition of service as referred in the competition act is used in the

sense of news information and not database information. Also, privacy & data security

concerns are not regulated under competition act.

~ISSUE II~

WHETHER PATENT SHOULD BE GRANTED TO RVV?

It is humbly submitted before the Hon’ble court that the Apex Court must not intervene in the

process established by an act of the Parliament. The Patent Act, 1970 provides for a process

which has not been followed in the instant case. Thus, hampering the core principles of

federalism and amounting to judicial overreach. The question of fact must not be dealt by

Supreme Court. Further, the computer implemented technology should be granted patent since

it is in compliance with all the essential ingredients of a patent vis-à-vis novelty, non-obvious

step and has industrial utility.

~ISSUE III~

WHETHER RVV& RHINE VALLEY HAVE VIOLATED SECTION 3 OF THE COMPETITION ACT?

It is humbly submitted before the Hon’ble court that the appellants have not violated section 3

of the competition act because there is neither any restriction created by appellants in the

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course of business of any party nor control over their trade. Hence, there is no violation of

section 3(4). Also, RVV has not performed any refusal to deal to the respondent as there was

no prohibition or restriction with respect to their trade was imposed. Further there is no net

AAEC caused to the market & the agreement was in regard with the intellectual property of

Mr. Chef & his team of data scientists, therefore the agreement falls under the exception of

section 3(5) of the competition act.

~ISSUE IV~

WHETHER RVV& RHINE VALLEY HAVE VIOLATED SECTION 4 OF THE COMPETITION ACT?

It is humbly submitted before this Hon’ble court that the conduct of RVV has not abused its

dominant position u/s 4(2)(e) as there is neither a favourable treatment provided to Rhine

valley, nor the markets are associated. Further appellants were under no obligation to provide

data to Swadeshi Tech, apart from what they contracted for, as the data-in-question does not

amount to essential facility.

~ISSUE V~

WHETHER RVV HAS VIOLATED PRIVACY OF THE CITIZENS OF INDRAHAAR?

It is humbly submitted before the Hon’ble court that privacy and data security concerns are not

regulated by Competition act & there is no legislation in place in Indrahaar governing the

same. Also, there has been no violation of Information Technology (reasonable security

practices & procedure & sensitive personal data or information) rules, 2011.

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ARGUMENTS ADVANCED

ISSUE I: WHETHER CCI HAS ERRED IN HOLDING THE JURISDICTION OVER

THE MATTER?

¶I.1. It is humbly submitted before the Hon’ble Court that in the present matter, the issue of

jurisdiction is concerned only with Rhine Valley & RVV, therefore, CCI has been made as a

pro-forma party for this particular issue in the case i.e. it stands deleted from the array of

parties1 and the decision of this Hon’ble Court will be binding on the proforma party.2

¶I.2. It is humbly brought to the notice of this Hon’ble Court that when CCI first took the

cognizance of the present case the order was pronounced in favour of the appellants albeit they

contended before the CCI that it had no jurisdiction. Rhine Valley and RVV as a company is

dedicated towards the consumers and respects the laws of Indrahaar.

¶I.3. Therefore, although the decision was in favour of the appellants but the appellants are still

contending the same i.e. CCI did not have any jurisdiction over the matter. The main reason for

this being that appellants in the interest of justice, do not want that a wrong precedent for

jurisdiction is set out for the future of competition law of Indrahaar.

[A] INFORMATION DOES NOT COME IN GOODS AND SERVICES UNDER THE

AMBIT OF COMPETITION ACT, 2002.

¶I.4. It is submitted before this Hon’ble Court that the allegation raised by respondent is

concerned with violations of § 3 and § 4 of Competition Act, 2002. The essential ingredient

however for a matter to fall under the purview of the said sections is that there should be a

1
Punjab Urban Planning and Development Authority v. Mandeep Singh, (2016) 7 SCC 571.

2
Kamlesh Kohli & Others v. Escotrack Finance, (2000) 1 SCC 324.

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‘good’ or ‘service’ in respect of which competition is violated and information is not a good or

service.

[A.1] INFORMATION IS NOT A GOOD.

¶I.5. As per § 2(7)3 of sales of goods act, 1930, “goods” means every kind of movable property

other than actionable claims and money. In the case of Boardman v Phipps, it was held that

information is not a property at all.4 In addition to this, information in the databank of RVV is

confidential in nature5 and confidential information by no means can be regarded as property.6

¶I.6. Further, sin qua non for anything to fall under the ambit of ‘goods’ is that it has to be a

movable property. But, in the present factual matrix, the information which is concerned is

prima facie not a property.7 Therefore, it is evidently clear that information does not fall under

the ambit of goods.

[A.2] INFORMATION IS NOT A SERVICE.

¶I.7. Information in databank does not come under the ambit of service as defined in § 2(u)8 of

Competition Act, 2002. The phrase used in this section is “conveying of news or information”.

The term information here has to be read in accordance with the word news and not separately.

In the case of J. Jaylalitha v. Union of India9, it was made clear that the alternatives joined by

‘or’ need not always be mutually exclusive. Further, ‘or’ can be read as ‘and’ to give effect to

3
§ 2(7) Sales of Goods Act, 1930, No. 13, Acts of Parliament, 1930.

4
Boardman v. Philipps [1967] 2 AC 46.

5
¶ 6, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

6
Force India F1 Team Ltd v. Malaysia Racing Team SDN BHD [2012] RPC 29 [378].
7
Stephen John Coogan v. News Group Newspapers Ltd., 392 ALL ER 74 (2012 Court of Appeal).

8
§2 Competition act, 2002, No 12, Acts of Parliament, 2002.

9
J. Jaylalitha v. Union of India, (1999) 5 SCC 138.

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“the clear intention of the legislature as expressed in the Act read as whole”.10 By applying the

rule of construction – ‘noscitur a sociis’ in the present matter, ‘information’ has to be read with

the preceding word ‘news’. The meaning of a word is to be judged by the company it keeps.11

It is a legitimate rule of construction to construe words in an Act of Parliament with reference

to words found in immediate connection with them.12 This rule according to Maxwell13, means

that when two or more words which are susceptible of analogous meaning are coupled

together, they are understood to be used in the cognate sense.

¶I.8. Thereby, it is evidently clear that the information referred to in this section14 is not used in

the sense of database information but in the sense of news information. Thus, the matter does

not come under the ambit of ‘goods’ or ‘services.’ Therefore, allegations by Swadeshi Tech for

violation of § 3 and 4 of competition act, 2002 stand on no footing.

[B]THERE DOES NOT EXIST A PRIMA FACIE CASE.

¶I.9. A “serious question” is considered to be any question which is not “frivolous or

vexatious”.15 A proceeding is said to be frivolous or vexatious when the party bringing it is not

acting bona fide.16 Swadeshi Tech in the present case is trying to get undue advantage of the

appellant’s technology and suing the appellant with a mala-fide intention so that the appellant

suffers heavy losses because of strict monetary fines of competition law which in turn would

ultimately lead to market dominance of Swadeshi Tech.

10
State of Bombay v. RMD Chamarbaugwala, AIR 1957 SC 669.

11
Rohit Pulp & Paper Mills Ltd. v. Collector of Central Excise, (1991) AIR 754,761 SC.

12
Angus Robertson v. George Day, 5 AC 63, 69 (1879); Ahmedabad Pvt. Primary Teachers Association v.
Administrative Officer, (2004) 1 SCC 755.

13
MAXWELLL, INTERPRETATION OF STATUTES, 79 (11th ed, 1962).
14
§ 2(u) supra note 8.

15
American Cyanamid v. Ethicon Ltd, 2 WLR 316, 323 (1975).

16
Bryan A. Garner, Black’s Law Dictionary 170 (9thed. 2009).

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¶I.10. If a particular act seems to be anti-competitive, only thereafter the CCI gets jurisdiction

to go into the question of such anti-competitive practice.17 Competition Act itself is not

sufficient to decide and deal with the issues, arising out of the provisions of the CPC. Also, in

the case of Deutsche Telekom v. European Commission18, it was held that it is only if the

legislative framework eliminates the possibility of competition, then the jurisdiction of

Commission would be excluded.

[C]ALTERNATE REMEDIESARE NOT EXHAUSTED.

¶I.11. Having established the fact that the information in the present case is not a good or

service under the ambit of competition act, 200219, it would be arbitrary and irrational to still

consider such matter in CCI’s scope because it is not a competent body to deal in this regard.

¶I.12. Having established the fact that CCI does not have jurisdiction over this particular case,

it is evidently clear that maxim ‘forum non-convenience’ is applicable in the present case. Any

issue which may arise is only of data privacy which is dealt under IT Act, 2000.20

¶I.13. It is evidently clear that if the lowest body from the case began and appeals arose, if that

judicial body is not having any relevant jurisdiction, then all the subsequent appeals in higher

courts are invalid. Thereby, in the present case, if CCI is not having the jurisdiction of

particular matter, then the subsequent appeals of NCLAT and Supreme Court should not be

entertained and be dismissed straight away.

17
CCI v. Bharti Airtel Ltd. & Ors., 2018 SCC Online SC 2678.

18
Deutsche Telekom v. European Commission C-280/08 P, Judgment dated 14.10.2010.

19
Supra note 8.

20
Information Technology Act, 2000, No. 27, Acts of Parliament, 2000.

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[C.1] MOST APPROPRIATE FORUM.

¶I.14. Since, it is already established that any breach of Information Technology Act, 2000 is

not governed by CCI21, therefore, any allegation pertaining to the aforesaid act, should be dealt

under §46 of the IT act by an adjudicating officer and is not a matter of concern for CCI.

¶1.15. Moreover, CCI has accepted that if there is a code governing a particular matter, then

that particular matter should be dealt in accordance with the provision of that code and not

according to the Competition Act.22

ISSUE II: WHETHER PATENT SHOULD BE GRANTED TO RVV?

¶II.1. It is contended before this Hon’ble Court that Supreme Court cannot flout the process

established by the legislature otherwise it would amount to judicial overreach. In addition,

computer implemented technology of RVV qualifies all the essentials of patent vis-à-vis

invention is a patentable subject matter, novel, inventive step and has industrial utility.23

[A] JUDICIAL OVERREACH BY THE SUPREME COURT.

¶II.2. It is humbly submitted before this Hon’ble Court, that if a statute provides for a specific

provision than that provision has to be followed instead of any other intervention by any

authority.24 In the instant case, the Patents Act, 197025 has provided for a specific hierarchy

with due process to register a patent. Therefore, the courts cannot be inconsistent with

substantial provision of the relevant statutory law.26

21
Vinod Kumar Gupta v. Whatsapp Inc., (2017) 82 taxmann.com 272 (CCI).
22
CCI v. Bharti Airtel Ltd., (2019) 2 SCC 521.

23
Bombay Agarwal co. v. Ramchand Diwanchand, AIR 1953 Nag 154.

24
Delhi Jal Board v. National Campaign for Rights of Sewerage Workers (2011) 8 SCC 568.

25
§ 73, The Patents Act, 1970, NO. 39, Acts of Parliament,1970.

26
Prem Chand v. Excise Commissioner of U.P, AIR 1963 SC 996.

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¶II.3. Moreover, any disputed question of fact cannot be adjudicated by the Supreme Court.27

In the instant matter, there is a question of fact i.e. whether the application of RVV qualifies for

the grant of patent and the algorithm which per se is not patentable if combined with hardware

can be patentable. This is a substantial question of fact which also requires technical expertise

in the subject matter.

¶II.4. In fact, granting patents on the merits of matter is a highly technical field which requires

the domain specific officers for that particular matter. Thus, legislature intended to provide for

patent controller who has the specialized knowledge of subject. And, question of fact is

decided by controller which shall be binding on the higher courts.28 Therefore, Supreme Court

has no jurisdiction over the matter and it will be a clear case of judicial overreach if the Ld.

Apex Court decides on the question of fact.

[B] COMPUTER IMPLEMENTED TECHNOLOGY BY RVV IS A PATENTABLE

SUBJECT MATTER.

¶II.5. It is submitted that as per § 3(k) of patent act, 197029, computer program or algorithm

per se is not an invention and thus not patentable. Now, according to black’s law dictionary30,

per se means ‘by itself’. This means that software alone is not allowed to get a patent but its

combination with a hardware may be patentable31 which depends upon facts and circumstances

of each case.32

27
ABL International Ltd. v. Export Credit Guarantee Corporation, (2011) 3 SCC 553.

28
The State of U.P & Another v. Johri Mal, (2004) 4 SCC 714.

29
§3(k), supra note 25.

30
Bryan A. Garner, Black’s Law Dictionary 170 (9thed. 2009).
31
Report of the Joint Committee presented to the Rajya Sabha on 19th December, 2001.

32
Lantana Limited v. Comptroller General of Patents, [2014] EWCA Civil 1463.

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¶II.6. Now, in the present case, the technology developed by RVV is a combination of a

computing platform i.e. a hardware along with an algorithm i.e. software.33 Thus, it is not

software alone for which patent is being asked for but the technology which includes both

software and hardware. The rationale is that a technical process carried out under the control of

a computer program, is not be a claim to a computer program as such, but to the whole process

which is patentable.34

¶II.7. Moreover, the decisive factor for patentability of software is “what technical contribution

the invention as a whole makes to the known art.35” In the present case, the computer

implemented technology of RVV is the only unique technology which can feed information on

a continuous basis and can create a constantly expanding framework for holding data and

information. Thus, it is eligible for patent protection.36

[C] COMPUTER IMPLEMENTED TECHNOLOGY OF RVV IS NOVEL.

¶II.8. Novelty is an essential feature on which patentability of an invention depends.37

According to Black’s law dictionary, novelty means ‘the newness of the information that is

generally unused or unknown and that gives its owner a competitive advantage in a business

field.

¶II.9. In the present case, albeit a patent has already been granted to the technology in Europe,

the present invention still falls under the novelty requirement because the computer

implemented technology in the present factual matrix is dynamic in nature and continuously

evolving. Machine learning provides algorithms that learn from data and create foresights

based on that data. There has been a substantial and continuous change in the algorithmic
33
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

34
Vicom/Computer related invention (Decision T 208/84) [1987] 2 EPOBA 74.
35
In Re, Koch and Sterzel, 1988 EPOR 72.

36
IBM/Computer programs II, (Decision T 935/97) [1999] RPC 861.

37
Lallubhai Jariwala v. Chimanlal and Co., 1935 SCC Online Bom 20.

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technology which adds efficacy to the technology thereby indicating that the novelty

requirement is being fulfilled.

¶II.10. Also, it has been accepted by Indian Patent Office in Novartis Imatinib’s case38 that if

there is an already existing patent on a particular invention, and a substantial result comes out

of the patented invention which in itself qualifies for patentable subject matter and is new, then

it can also be granted patent.

[D]COMPUTER IMPLEMENTED TECHNOLOGY- RVV’S INVENTIVE STEP.

¶II.11. Inventive step is yet another sin qua non for a patent to be granted.39 In the present

matter, before the development of the computer implemented technology, database of

information was maintained manually which was cumbersome and required a lot of labour. It

was impossible to manually feed all the large amount of customer information.40 Now, due to

the combined efforts of Mr. Leon Chef along with his team of computer engineers and data

scientist made it possible to dynamically update vast amounts of customer data in the database.

It is submitted that it would not have been obvious to a person having ordinary skill in the art

¶II.12. This was a breakthrough invention which changed the whole perspective of cloud

infrastructure services and was non-obvious in nature.41

38
Novartis AG v. Mehar Pharma & Ors, 2004 SCC Online Bom 1063.
39
Bishwanath Prakash Radhey Sham v. Hindustan Metal Industries, (1979) 2 SCC 511.

40
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

41
Novartis AG v. Union of India & Others, (2013) 6 SCC 1.

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[E] INDUSTRIAL APPLICABILITY OF THE COMPUTER IMPLEMENTED

TECHNOLOGY.

¶II.13. Since, it is necessary for a patent to be of an industrial application 42, it is an essential

feature which should be always taken into consideration.43 In the present factual matrix, the

computer implemented technology of RVV is a useful invention for the industry of Cloud

Infrastructure Services.44 The dynamic technology received information on a continuous basis

so as to create a constantly expanding framework for holding data and information45 and is a

very important tool to the enterprise.46

¶II.14. As Mr. Chef realized that it would be impossible to manually feed customer

information, the enterprise urgently needed a technological solution47 and thus, the computer

implemented technology served a useful purpose.48 Therefore, the computer implemented

technology should be granted a patent.

42
Supra note 38.

43
MB Rao & Manjula Guru, Patent Law in India (ed.2010, Kluwer Law International).

44
Monsanto Technology LLC v. Nuziveedu Seeds Ltd., 2019 SCC Online SC 25.

45
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.
46
Council for scientific & Industrial research v. Hindustan lever Ltd., 2015 SCC Online IPAB 107.

47
¶ 4, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

48
LJ Mullard v. Philip Co., (1953) 52 RPC 287.

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ISSUE III - WHETHER RVV & RHINE VALLEY HAVE VIOLATED SECTION 3 OF

THE COMPETITION ACT?

¶III.1. It is contended before the Hon’ble court that the appellants have not violated § 3 of the

competition act because there is no restriction created by appellants for any party, there is no

AAEC to the market & the agreement was in regard with the intellectual property of RVV.

[A] RVV’S AGREEMENT AS IN EXEMPTION UNDER SECTION 3(5).

¶III.2. It is humbly submitted that databases are an important tool for businesses, allowing

them to run smoothly.49 There is nothing inherently anti-competitive about proprietary

databases; indeed, companies normally do have proprietary datasets on their own products and

services.50

[A.1] DATABASE OF RVV IS COPYRIGHTABLE.

¶III.3. In the present case, Mr. Chef along with a team of computer engineers and data scientist

developed a technology that maintains information in a database.51 RVV invested a

considerable amount of time, and labour in developing this kind of software technology.52

Therefore, the data which is accrued out of this software technology is copyrightable as

compilation of addresses developed by devoting time, money, labour and skill amounts to a

literary work in which the author has a copyright.53

49
Tata Teleservices Ltd. v. BSNL Ltd.& Others, (2008) 10 SCC 556.

50
Jay Modrall, Big data and algorithms: Focussing the discussion, Oxford University (Jan 15, 2018),
https://www.law.ox.ac.uk/business-law-blog/blog/2018/01/big-data-and-algorithms-focusing-discussion.
51
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

52
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

53
Burlington Home Shopping Pvt. Ltd. v. RajnishChibber, (1995) 6 DLT61.

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¶III.4. Furthermore, the Copyright Act, 1957 protects intellectual property rights in literary,

dramatic, musical, artistic and cinematographic works. The term “literary work” includes

computer compilations and databases as well.54Thus, the database which RVV has is well

within the bounds of Copyright Act, 1970 as is evident from the case which concerned

compilation of data of a law firm; it was held that although the amount of originality in a

compilation is small, it is still protected by law.55

¶III.5. Further, Delhi HC in one its judgement recognized protection of databases under

copyright law.56Also, according to doctrine of minimum modicum of creativity57, even if any

information is in public sphere but includes a certain level of creativity, then in that case

though the individual data is not protected58, compilation as a whole is copyrightable as there is

some amount of creativity in it.

[A.2] REASONABLE CONDITIONS IMPOSED IN THE DISPUTED AGREEMENT.

¶III.6. Having established the fact that customer list stored on a computer is recognized as a

protectable compilation under copyright act, 195759, it is evidently clear that Mr. Leon Chef

and his team of data scientists have a right to protect their property from being exploited

illegally in the market.60 It is contended that since database falls under the exception of §

54
§ 2(o) Copyright Act, 1957, No. 14, Acts of Parliament, 1957 (India).

55
Govindan v. Gopalakrishna, (1955) AIR391 (Mad.).

56
Tech Plus media Pvt. Ltd. v. Jyotijanda & Ors., 2014 SCC OnLine Del 1819.

57
Eastern Book Company v. D.B Modak, (2008) 1 SCC 1.

58
Copyright Act of 1976 § 103(b), 17 U.S.C.

59
Diljeet Titus v. Alfred A. Adebare, (2006) 130 DLT 330.

60
K. Sera Sera digital India Ltd. v. Pen India Ltd., [2017] 83 taxmann.com 11(CCI).

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3(5)(i)(a)61 of the act, it is the right of the copyright holder that they can impose conditions in

order to protect their right.62

¶III.7. Since, copyright holder has a right to use his database in manner as he may deem fit63,

he is at liberty to protect the rights conferred.64 In the present matter, the terms of the contract

were negotiated and full access to the databank was not granted to swadeshi-tech because

respondents did not want their proprietary database to be out of their control.

[B] NO ACTION OF RVV & RHINE VALLEY SHOWCASES AN ANTI-

COMPETITIVE CONDUCT.

¶III.8. It is humbly submitted before the Hon’ble court that the respondents have not violated

section 3 of the competition act because there has been no restriction created by RVV or Rhine

Valley to swadeshi-Tech in their business.

[B.1] NO EXCLUSIVE SUPPLY AGREEMENT BETWEEN RVV & RHINE VALLEY OR ANY

OTHER MNC.

¶III.9. The sine qua non for attracting a liability u/s 3(4) explanation (b) of the competition

act65 is that there should be restriction created by the agreement to the purchaser.66 In the

present case, RVV agreed to provide data to swadeshi-tech on contractual basis.67 There has

61
§3, supra note 8.

62
Nandu Ahuja v. Competition Commission of India, [2014] 42 taxmann.com 487 (CAT).

63
FICCI Multiplex Association of India Federation House v. United Producers/Distributors Forum, 2011 SCC
Online CCI 33.

64
Indiacan Education ltd. v. Aldine ventures Ltd, [2016] 76 taxmann.com 140 (CCI).
65
§3, supra note 8.

66
Keerthy Krishanan v. Bharat Petroleum Corp. Ltd, (BPCL) Mumbai 2013 SCC Online CCI 27.

67
¶ 8, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

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been no such condition imposed68 by RVV in its agreement for providing cloud infrastructure

services. Any of the multinational technology company including Rhine Valley or Swadeshi-

tech was not compelled to perform or omit to perform any task in their regular course of

business.69

[B.2] NO EXCLUSIVE DISTRIBUTION AGREEMENT BETWEEN RVV & RHINE VALLEY

OR ANY OTHER MNC.

¶III.10. The condition which makes “exclusive distribution agreement70” to fall under the

ambit of anti-competitive practices is that there should be restriction regarding to the supply of

the goods.71 In the present factual matrix, RVV is providing cloud infrastructure service to the

companies and is just compiling the data of multinational technology companies in form of a

database.72 RVV does not have any control regarding to the goods of any company including

Rhine valley as well.73

[B.3]NO REFUSAL TO DEAL BY RVV TO SWADESHI-TECH.

¶III.11. As per the explanation of ‘Refusal to deal’ u/s 3(4) explanation (d) of the competition

act74, it is clearly evident that a prima facie restriction should be created for the enterprise to

68
Vishal Pande v. Honda Motorcycles & Scooters India Pvt. Ltd., Haryana [2018] 92 taxmann.com 59 (CCI).

69
JHS laboratories Ltd. v. Procter & Gamble Home Products Ltd, [2014] 41 taxmann.com 363 (CCI).

70
§3, supra note 8.

71
NK Natural Foods Pvt. Ltd. v. Akshya Pvt. Ltd, [2014] 44 taxmann.com 216 (CCI).
72
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

73
Dilip Modwil v. Insurance Regulatory & Development Authority, [2014] 51 taxmann.com 308 (CCI).

74
§3, supra note 8.

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whom goods are sold or from whom goods are brought.75 In the present case, the evidences are

not enough to show that a limit of choice has been created.76

¶III.12. It is essential for a case to build under refusal to deal, that the agreement shall prohibit

the enterprise in some manner77 or a problem is created in their regular course of business.78 It

is clearly evident from the facts there is no requirement or restriction imposed79 to Swadeshi-

tech and no entry barriers were created80 by the agreement because the agreement was for

providing customer information81 and no term or condition creating restriction to deal was

imposed by the agreement.82

[C] NO APPRECIABLE ADVERSE EFFECT ON COMPETITION.

¶III.13. It is submitted before this Hon’ble court that any vertical agreement is only in

contravention of section 3(1) only if they cause or likely to cause an AAEC effect 83& they

cannot be per se assumed to be illegal.84 In the present matter, no action of RVV has restricted

the market85 or distribution of Swadeshi-tech.86 Further, there is an absence of evidence to

75
Shamsher kataria v. Honda Siel Cars India Ltd., [2015] 59 taxmann.com 419 (CCI).

76
Ghanshyam DaasVij v. Bajaj Corp. Ltd., [2016] 68 taxmann.com 63 (CCI).

77
Id.
78
Alkem Laboratories v. CCI, [2016] 70 taxmann.com 48 (CAT).

79
Supra note 68.

80
Supra note 76.

81
¶ 8, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

82
Cupid Ltd. v. Ministry of Health& Family Welfare, Government of India, [2019] 101 taxmann.com 369 (CCI).

83
Supra note 75.
84
Mohit Manglani v. Flipkart India Pvt. Ltd., [2015] 57 taxmann.com 57 (CCI).; National Society of Professional
Engineers vs. United States, 435 US 679 (1978).

85
Counfreedise v. Times Group India Ltd., [2018] 97 taxmann.com 290 (CCI).

86
G. Krishna Moorty v. Karnataka Films Chamber of Commerce, [2018] 97 taxmann.com 419 (CCI).

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show that not providing other than contact details restricted the market of Swadeshi-tech, but,

since contact information is provided to the enterprise, their market reach is increased.87 Hence,

there is no AAEC in the market.

ISSUE IV – WHETHER RVV & RHINE VALLEY HAVE VIOLATED SECTION 4 OF

THE COMPETITION ACT?

¶IV.1. The counsel humbly pleads before this Hon’ble court that the conduct of RVV & Rhine

Valley is not an abuse of dominant position u/s 4 of the competition act because § 4(2)(e) is not

attracted and personal data is not an essential facility.

[A] NON-APPLICABILITY OF SECTION 4(2)(E) OF THE COMPETITION

ACT.

¶IV.2. Section 4(2)(e) of the competition act88 says that, “ There shall be an abuse of dominant

position [under sub-section (1), if an enterprise or a group]- Uses its dominant position in one

relevant market to enter into, or protect, other relevant market.89 It is contended that there is no

applicability of the particular section in the present case because firstly there is no favourable

treatment90 by RVV for Rhine Valley to protect their position in the market of OMP and

secondly the two relevant markets are not associated.91

87
Sudeep PMV v. Kerala Chemist & druggist Association, [2017] 87 taxmann.com 234 (CCI).

88
§ 4(2) (e), supra note 8.
89
CCI v. Fast Way Transmission Pvt. Ltd., (2018) 4 SCC 316.

90
Schott Glass India Pvt Ltd v. CCI, [2014] 45 taxmann.com 157 (CAT).

91
XYZ v. REC Power Distribution, 2015 SCC Online CCI 8.

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[A.1] RELEVANT MARKETS OF RVV & RHINE VALLEY.

¶IV.3. It is humbly submitted that the pivotal inquiry in case of alleged abuse of dominance is

whether the opposite party is in a dominant position in the relevant market or not.92 Therefore,

assessment of dominance is to be preceded by delineation of the correct relevant market in

which dominance of the enterprise under consideration is to be assessed. 93 Therefore,

identifying the relevant market for the instant case serves a great purpose.

¶IV.4. The Relevant product/service market u/s 2(t) of the competition act 94 is defined as a

market comprising all those products or services which are regarded as interchangeable or

substitutable by the consumer95, by reason of characteristics of the products or service, their

prices and intended use.96 Now, to determine relevant market, SSNIP test97is used to examine

the degree to which consumer may shift to purchase product in response to a small but

permanent increase in price.98 In the present factual matrix, the relevant market of Rhine valley

is OMP having a competition with swadeshi-tech. Also, the relevant market is determined from

the point of view of a consumer99, therefore relevant product market of Rhine Valley would be

OMP only.

92
Pankaj Agarwal v. DLF Gurgoan Home Developers Pvt. Ltd, 2015 Comp LR 728 (CCI).

93
GKB Hi Tech Lenses Pvt. Ltd. v. Transition Optical India Pvt. Ltd., Case No. 55/2012 (CCI).

94
§2(t), supra note 8.

95
Om Dutt Sharma v. Competition Commission of India., 2015 Comp LR 529 (Comp AT).

96
Jindal Steel & Power Ltd. v. Steel Authority of India Ltd, (2012) 107 CLA 278 (CCI).
97
Ess Cee Securities Pvt. Ltd. v. Competition Commission of India, [2017] 77 taxmann.com 89 (CAT).

98
Dr. Heeranandani Hospital v. CCI, [2015] 65 taxmann.com 65.

99
M/S Maharastra State Power Generation Co. Ltd. v M/s. Mahanadi Coalfields Ltd, 2013 Comp LR 910 (CCI).

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4TH JINDAL MOOT COURT COMPETITION, 2019 P a g e | 33

¶IV.5. Further, relevant product market is classified on the basis of intended use 100 and it

would be completely different in case of Rhine Valley & RVV because the intended use of

Rhine Valley would be OMP but the intended use of RVV would be Cloud Infrastructure

Services101 and it is possible for different services to have different relevant product markets

even if they are from same enterprises.102

[A.2] NO FAVOURABLE TREATMENT BY RVV TO RHINE VALLEY.

¶IV.6. Firstly, there should be a demonstrated ‘use’ of the alleged dominant position 103& the

circumstantial evidence must amount to satisfy the requirements of leveraging.104 The

requirements are not fulfilled in the present factual matrix because providing of database to

Rhine Valley was a part of business policy of RVV and it was a regular course of action with

other companies also. In the present matter, the information kept in the databank of RVV was

although confidential, but it was provided to those companies which contributed to the

database105 i.e. it was provided to all the companies which relied upon the cloud computing

technology of RVV.

¶IV.7. There has to be a special conduct or action by the alleged enterprise in the secondary

market106 or a favourable conduct for the associate/subsidiary company.107 As already

100
Saint Gobain Glass India Ltd. v. Gujrat Gas Company Ltd., 2015 Comp LR 431 (CCI).

101
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

102
Supra note 75.

103
India Trade Promotion Organization, Pragatibhavan, New Delhi v. CCI & Ors, 2016 SCC Online Comp AT
452.

104
Supra note 91.
105
¶ 6, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

106
Pan India Infra Projects Pvt. Ltd. v. CCI, [2015] 57 taxmann.com 388 (CAT).

107
Supra note 91.

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established that providing data to Rhine Valley was a regular course of action, hence it does

not violate section 4(2) (e).108

¶IV.8. Moreover, it is essential for the applicability of § 4(2)(e) that there has to be significant

‘use’ of the dominant position109 which means there has to be a specific action or omission in

favour of the enterprise in secondary market110 which is clearly not observed in the present

case. Also, RVV has not rejected any enterprise for the services which they offered to Rhine

valley111. Therefore, the allegation suffers from a lack of concrete mechanism showing how

RVV could leverage its position in OMP market.112

[A.3] MARKETS OF RVV & RHINE VALLEY ARE NOT ASSOCIATED.

¶IV.9. When a market can affect the competition in another market, such markets are called as

associated markets.113 There has to be distinct but associated markets for applicability of

section 4 (2)(e).114 In the present matter, market of RVV is cloud infrastructure service & the

market of Rhine Valley is OMP. The allegation on RVV that it has leveraged its position is

frivolous because there does not exist any close associational link. Moreover, there is no

specific circumstance which would justify the leverage claim.115

108
Bharti Airtel Ltd. v. Reliance Industries Ltd., [2017] 82 taxmann.com 43(CCI).

109
Shri v. Ramchandra Reddy & Ors. v. HDFC bank & Ors, (2011) CCI 28.

110
Supra note 108.

111
Supra note 91.

112
Financial Software & Systems Pvt. Ltd. v. M/S ACI &ors., Case 52/2013, (CCI).
113
United States Football League v. National Football league, 842 F.2d 1335 (1988).

114
MCX Stock Exchange Ltd. v. National Stock Exchange of India Ltd, [2011] 13 taxmann.com 110 (CCI).

115
Tetra Pak International SA v. Commission, (1996) ECR I-595.

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¶IV.10. For leveraging the position in the secondary market, there should be a prima facie

benefit & a hindrance to competition created in the secondary market116 which is clearly not

seen in the present matter. Also, there is no wrongful entrance in the secondary market 117 and

there is no compulsion or lack of options created by enterprise in the secondary market.118

Hence, RVV has not leveraged its position in the market of OMP 119 because there is no

discretion enjoyed by the dominant enterprise in the secondary market.120

[B] NO DENIAL TO MARKET ACCESS ON PART OF RVV.

¶IV.11. It is contended before the Hon’ble Supreme Court that respondents have not abused

their dominant position by not providing the personal data to Swadeshi-tech because they were

not under any obligation to provide the data.

[B.1] SPECIFIC PERFORMANCE OF THE CONTRACT IS FULLFILLED BY RVV.

¶IV.12. Parties to a contract are free to settle for any terms they please121, condition being that

they are legally acceptable. In the present case, the court can only enforce the terms which are

expressly mentioned in the contract122 because when Swadeshi-tech agreed to pay the

consideration of the contract, it amounts to consensus-ad-idem.

¶IV.13. The language of the contract between RVV and Swadeshi Tech explicitly stated that

RVV would be sharing “all the relevant contact details of its customer as available in its

databank including but not limited to telephone, email and physical delivery address”. It is

116
Just ticket Pvt. Ltd. v. Big Tree Entertainment Pvt. Ltd, [2017] 80 taxmann.com 19 (CCI).

117
Supra note 104.

118
Supra note 108.

119
Matrimony.com v. Google India Pvt. Ltd, (2018) CCI 1.
120
Turbo Aviation Pvt. Ltd. v. Bangalore International Airport Ltd, [2016] 66 taxmann.com 43 (CCI).

121
The State of Madras v. Ramalingam and Co., AIR 1956 Mad 695.

122
A E Farr Ltd. v. The Admiralty, [1953] 2 All ER 512; Gardiner v. Moore, [1969] 1 QB 55 734.

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submitted that the contract explicitly says that RVV will be sharing ‘relevant contact details’

that means consensus ad idem of both the parties was in getting contact details of customer

only. Thereby, search history and personal preferences are by no means ‘relevant contact

details’ as one cannot form or accrue contact information out of it. Further, the clause stated,

“but not limited to….” is just a discretionary clause that RVV may provide more that the

information expressed on their own accord.

[B.2] PERSONAL DATA IS NOT AN ESSENTIAL FACILITY FOR SWADESHI-TECH.

¶IV.14. Any facility or infrastructure without access to which, competitor cannot provide

service to their customers123 can be regarded as an essential facility. It is contended that the

data which was not shared with Swadeshi-tech does not constitute an essential facility because

it does not hamper the ability of Swadeshi-tech to effectively compete with Rhine Valley.124

¶IV.15. Until the opportunity of competition is not restricted, there is no violation of the act.125

In the present case, Swadeshi-tech entered to the market of OMP in 2015 and had a market

share 35% by 2018.126 Also, Swadeshi-tech had a much more reliable delivery system in

Indrahaar127 which clearly shows that they were in a condition to give effective competition in

the market.

¶IV.16. Further, essential facility can be determined from that test that refusal to access to it

creates a monopoly for the holder128 as the word essential indicates that the person must have

123
Oscar Bronner GmbH & Co. Kg v. Media print Zeitung, (case c-7/97 [1999] 4 CMLR 112).

124
Supra note 75.

125
Hemant Sharma v. AICF, [2018] 96 taxmann.com 35 (CCI).
126
¶ 7, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

127
¶ 8, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

128
Arshiya Rail Infrastructure Limited (ARIL) v. Ministry of Railways, [2012] 27 taxmann.com 25 (CCI).

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more than inconvenience or some economic loss.129 In the present factual matrix, no effect on

competition can be seen by the reason that RVV didn’t provided Swadeshi-Tech with the

information not mentioned in the contract.

¶IV.17. Moreover, it is also essential that there exists a denial to the competitor of such

facility130, but the negotiated contract provided them all the contact details which were

essential to increase their customer reach.131 Therefore, there is no denial of an essential facility

to Swadeshi-tech.

ISSUE V: WHETHER RVV HAS VIOLATED PRIVACY OF THE CITIZENS OF

INDRAHAAR?

¶V.1. It is humbly submitted before this Hon’ble Court that there is no privacy violation in the

present case because firstly there is no privacy related legislation in Indrahaar and secondly

RVV has complied with the data collection norms established under IT Act, 2000.

[A]THERE IS NO LAW REGULATING DATA PRIVACY OF CITIZENS OF

INDRAHAAR.

¶V.2. It is contended that violation of a law is possible only if prima facie there exist a law on

that subject matter. Currently, there is no law which regulates privacy related concerns of

citizens in Indrahaar. Therefore, there should be no case arising out of privacy and the claims

of CNI are frivolous & vexatious.

129
Twin Labs v. Weider Health & Fitness, 900 F.2d 566,570 (2d Cir. 1990).

130
MCI Communications Corp. v. AT&T., 7 FCC Rcd. 807 (1992).

131
¶ 5, Moot Proposition, 4th Annual Jindal Moot Court Competition, 2019.

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[B] RVV HAS COMPLIED WITH THE NORMS OF IT RULES,2011.

¶V.3. It is humbly submitted that RVV as a corporate body is not ‘negligent’ in maintaining

reasonable security to protect data due to which any wrongful loss or gain is accrued. Thus,

RVV will also not fall under breach of IT Rules, 2011.

[B.1] RVV IS NOT NEGLIGENT IN MAINTAINING REASONABLE SECURITY FOR DATA

PROTECTION.

¶V.4. The information was kept highly confidential and RVV shared it only with those

companies which contributed to the database. In fact, it was this level of confidentiality that

when Swadeshi Tech approached the appellants for contact details of its user, they were not

even able to know the full capability of RVV’s cloud infrastructure services despite they were

going to make a contract because of data’s confidential nature which was maintained by RVV.

¶V.5. Not only this, Rhine Valley also provided for privacy policy132 regarding collection of its

customer data. Thus, they have reasonable security practices for maintenance of standards of

confidentiality of such data.133

[B.2] RVV THROUGH RHINE VALLEY HAD TAKEN PRIOR CONSENT

¶V.6. It is submitted that IT Rules, 2011 work only on sensitive personal data.134 In the present

case, only bank details are sensitive for which Rhine Valley has given the discretion of

consent135 to its users.136 This is also in compliance with rule 5(1)137 of the IT (reasonable

security practices and procedures and sensitive personal data or information) Rules, 2011.

132
Rule 4, Information Technology (Reasonable Security Practices & Procedures & sensitive Personal Data or
Information) Rules, 2011.

133
Rule 8, Id.

134
Rule 3, Id.
135
Rule 5(7), Id.

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¶V.7.Further, Consent has been viewed as an expression of a person’s autonomy or control,

which has the consequence of allowing another person to legally disclaim liability for acts

which have been consented to.138 In the double click139case, it was held by the court that use of

database to analyse sensitive information of net surfers and browsing preference without

consent amounted to invasion of privacy. But, in the present case, appellants had taken consent

from the users.

¶V.8. Furthermore, personal preferences of user which appellant in the present factual matrix

collected will not necessary infringe privacy of user but instead help the user in seamless

experience on internet. Having personal recommendations of users, it would help to provide for

good targeted ads which might be of certain use to users instead of random vague ads. For

instance, Netflix uses algorithms to personalise recommendations for its viewers, and also

curates its shows based on consumer preference data. Such use of data promotes customer

choice, thereby increasing consumer welfare.

136
Clarification No.16, 4th Annual Jindal Moot Court Competition, 2019.

137
Supra note 132.
138
John Kleinig, The Nature of Consent (Alan Wertheimer and Franklin Miller (eds.), Oxford University Press,
2009).

139
In Re DoubleClick Inc. Privacy Litigation, No. 00-0641, 2002 U.S. Dist. LEXIS 270999 (S.D.N.Y. 32rd May,
2002).

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PRAYER

Wherefore, in the light of the facts presented, issues raised, argument advanced and

authorities cited, it is most humbly prayed before the Hon’ble Supreme Court of Indrahaar

that it may be pleased to adjudge and declare that:

1) CCI erred in holding the jurisdiction over the matter and the matter should be transferred

before the most appropriate authority.

2) The work of appellants is eligible to get patent protection.

3) Conduct of appellants does not amount to anti-competitive conduct and abuse of

dominance.

4) There is no violation of privacy and the contentions of respondent should be struck right

away.

5) The cost of proceedings should be borne by the respondent.

And/or pass any other order, direction or relief that it may deem fit in the best interest of

justice, equity and good conscience.

All of which is humbly and respectfully submitted.

Sd/-

(Counsel on behalf of Appellants)

MEMORIAL ON BEHALF OF APPELLANTS

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