#Competition Commission of India

The Competition Commission of India closed Case No. 27 of 2025 after finding no contravention of Sections 3 or 4 of the Competition Act, 2002 in DIAL's award of security contracts to RAXA. The ruling clarifies that related-party transactions must still meet arms-length standards to avoid dominance abuse allegations.

CCI clarifies that vertical agreements under Section 3(4) of the Competition Act require proof of dominance to establish anti-competitive practices. Dealers cannot challenge unilateral termination unless market power is demonstrated, reinforcing the threshold for abuse of dominance claims under Section 4. The ruling impacts automotive dealerships and vertical business relationships across sectors.