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SM Assignment Submitted by Group-1 Sarbani Sahu Shubham Shibasis Garnaik Anshul Maheshwari Homal Ivnati Himanshu Shende Anjali Parakh

The document provides a summary of a group assignment submitted by Group 1. It addresses two questions: 1) Whether Coal India abused its dominant position. The group concludes that while Coal India maintains a natural monopoly, it has not abused its position based on factors like maintaining discounted international prices and fueling many power plants. 2) Whether large tech platforms like Google, Apple, Facebook and Amazon should be broken up. The group argues they should not, as the platforms have created valuable products and are not clearly abusing their market dominance, citing privacy improvements and separate business units at Amazon.

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38 views

SM Assignment Submitted by Group-1 Sarbani Sahu Shubham Shibasis Garnaik Anshul Maheshwari Homal Ivnati Himanshu Shende Anjali Parakh

The document provides a summary of a group assignment submitted by Group 1. It addresses two questions: 1) Whether Coal India abused its dominant position. The group concludes that while Coal India maintains a natural monopoly, it has not abused its position based on factors like maintaining discounted international prices and fueling many power plants. 2) Whether large tech platforms like Google, Apple, Facebook and Amazon should be broken up. The group argues they should not, as the platforms have created valuable products and are not clearly abusing their market dominance, citing privacy improvements and separate business units at Amazon.

Uploaded by

Sarbani Sahu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SM Assignment

Submitted by Group-1

Sarbani Sahu

Shubham Shibasis Garnaik

Anshul Maheshwari

Homal Ivnati

Himanshu Shende

Anjali Parakh

a) As per assessment in this case, would you conclude that Coal India has indeed
abused its dominant position? How would you go about establishing dominance
and abuse of dominance?

No, Coal India has not abused its dominant position. CIL, being a Maharatna company
has been under charges of penalty and investigation. FSA issue of penalty, international
pricing of CIL , unable to make decisions on the advise of Ministry of Coal,
MAHAGENCO filing case against CIL ,GSECL filing a complaint against CIL on the
quality of coal, penalty imposed by Competition Commission of India and COMPAT ; all
these incidents revealed that it was having a natural monopoly over other commercial
power plants and captive power plants which led to shareholder activism. CIL has been
able to maintain its monopoly and has been a competitor in the market because of its
discounted prices to international charges, making end user industry competitive at global
level, feeds 82 out of 86 coal based thermal power plants.

Dominance

CIL accounted for 82 percent of the production of coal in 2013-14 fiscal.

Supplier of coal to power plants like MAHAGENCO, GSECL

40 percent of the commercial energy requirement fulfilled by coal produced by CIL.

Accounts for 76 percent of total thermal power generation.


Abuse of Dominance

In the sector of coal linkage CIL was not able to fulfil the demand of ministry of coal
where they had to change the FSAs and were intervened by CCEA which showed the
non-seriousness in the level of efficiency promised by CIL. In the sector of public
listing,TCI accused CIL of not looking interest of minority shareholders.GSECL abused
CIL’s dominance for giving poor quality of coal leading to its huge loss as it had to pay
for low quality coal at the same price. It was also accused for its sampling technique and
installation of Agur Sampling machines. In turn, CIL’s pricing structure and feasible
alternatives failed to serve some amount of efficiency and consumer welfare.

b) what do you recommend for the big tech / platform monopolies – google, apple,
Facebook, and amazon – should they be broken up? If not, then they might
exercise significant market power and possibly tempt to abuse of their market
dominance – do you agree? 

No, the big tech monopolies should not be broken up because on teaming up, they have
produced some incredible products like Siri and Alexa and the use of these devices is
very high which is helping companies to gather more data persuasively.

After the Cambridge Analytica case(misuse of data of over 50 million Facebook users),
privacy of several accounts like the Facebook, WhatsApp privacy of reading read receipts
,Apple strong data privacy technology key; have been taken seriously .They are showing
consumers how the data is helping them in addition to how it does not harm them.
Amazon has also showed its advantages by owning its own network (AWS) and selling
its products(Amazon App and Prime Video) separately preventing cannibalization of one
onto other. So they are not abusing their own market dominance.

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