Despite finding circumstantial evidence, the Competition Commission of India (CCI) has rejected the charge of abuse of dominance by Hockey India. However, it imposed a marginal penalty of Rs 25 lakh on the association, asking Hockey India to split its regulatory and commercial functions.

CCI said in Hockey India’s case, the Director General’s report pointed out circumstantial evidence which, though not establishing violation of the Competition Act, persuaded CCI about the inherent potential of violation and the need for clear articulation and separation of the two roles of the sports association.

However, unlike its cricketing counterpart, Board of Control for Cricket in India, on whom CCI has imposed a Rs 52-crore penalty for abusing its dominant position in the Indian Premier League, Hockey India was told to pay a small penalty as a warning.

“As far as monetary penalty is concerned, a penalty at the rate of 10 per cent cannot be levied because the contravention is not excessive or repetitive. Considering this fact and the fact that the provision was introduced by Hockey India and Federation of Indian Hockey for the first time penalty at the rate of five per cent of the average turnover for the last three years would be sufficient. The average turnover comes to Rs 5.34 crore. Therefore, a penalty of Rs 25 lakh is imposed on Hockey India for the contravention of the Act,” the 74-page order said.

Hockey India – India’s officially sanctioned hockey body by virtue of an interim order of the Supreme Court – was allegedly discriminating against a few former players who had wanted to participate in the World Series Hockey (WSH) tournament, run on the lines of the now disbanded Indian Cricket League.

The players, including former hockey captain Dhanraj Pillay, had approached the CCI in 2011 alleging abuse of dominance by Hockey India, which had warned players against participating in the WSH, terming it an “unsanctioned” event.

Allegedly, players who had signed up to play in various franchisees of the WSH – which is organised by the rival Indian Hockey Federation (FIH) – were deliberately not selected for the Indian national hockey team.

In its order, the CCI said the possible conflict of interest between ‘regulatory’ and ‘organising of events’ roles of Hockey India had raised certain potential competition concerns in the mind of the regulator.

CCI said it did not find enough evidence against Hockey India in the present case, but “as and when any new facts come to its notice, the Commission shall consider them in the light of responsibilities enjoined upon it by the Act and shall act accordingly”.

The fair trade regulator asked Hockey India and FIH to modify their code of conduct and barred the two bodies from placing any restriction on players to play in sanctioned or unsanctioned events.

bindu.menon@thehindu.co.in

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