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Monsanto abused dominant position in India: CCI probe

This is the best tl;dr I could make, original reduced by 62%. (I'm a bot)

NEW DELHI: The investigation arm of the competition watchdog has found Mahyco Monsanto Biotech Ltd has abused its dominant position in the market for Bt Cotton technology by charging unfair licence fee and entering into pricing agreements directly aimed at overcharging farmers who use Bt Cotton seeds.

MMBL is an equal joint venture of Maharashtra-based seed company Mahyco and Monsanto Holding Pvt Ltd which has been acquired by German drugmaker Bayer.

"It has been shown that trait fee was linked with the maximum retail price of seed packets by MMBL just to extract surplus as much as possible from the end consumer of Bt Cotton seeds i.e. farmers," said the report by the director general of CCI, which has been reviewed by ET. CCI and Monsanto India did not respond to emailed queries at the time of going to press.

The report also says there are multiple instances where MMBL abused its dominant position in this market, most notably by charging higher trait fees from seed producers in Haryana, Punjab and Rajasthan compared with others as there was no price regulation in these states.

MMBL abused its dominant position to prevent the entry of competition by mandating that producers using its technology and provide notice to MMBL before entering into agreements with any provider of competing technologies, according to the report.

Further, the report notes that Monsanto sought to deliberately exclude certain seed companies which fulfilled all requirements prescribed by Monsanto from time to time and expressed willingness to meet further requirements.

Summary Source | FAQ | Feedback | Top keywords: MMBL#1 seed#2 fee#3 company#4 Monsanto#5

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Submitted May 22, 2019 at 11:31AM by autotldr
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