Virtue of Being a Government Backed Enterprise - Law Assignment Help

Assignment Task:

Task:

Reprographics India Pvt. Ltd. (hereinafter, Rif) is a govemment backed enterprise engaged in the manufacture and distribution of printers, scanners, and photocopiers. Currently, RIP only manufactures budget printers with a view to catering to local demand in the Delhi NCR area and offers the following models:

• Home Printer model @ INR 5000/- for inkjet printers and @ INR 10,000 for laserjet printers;

• Small Office model @ INR 10,000, for inkjet printers and @ INR 20,000 for laserjet printers; and 
Par l of3 

• Enterprise model @ MR 50,000 for laserjet printers, which it distributes to government offices and public sector undertakings located in Delhi NCR under exclusive contracts. 
Additionally, by virtue of being a government-backed enterprise, RIP receives the toner powder (for laserjet printers) and printer ink (for inkjet printers) at heavily subsidised rates from government manufacturers on non-exclusive basis, thus significantly reducing its cost of production, and allowing it to price its toner and ink cartridges more competitively. 
Other players in the market sell their Home Printer models at comparative prices of approx. INR 4000-6000. with the prices of Small Office printers Fmkjet and la.. and 1.10.,Sintb, laserjet models being significantly higher than RIP's, i.e., @ INR 15,000 to @ MR 30,000. Additionally, since the demand for both sizeable home printing as well as smaller offices can be met by laserjet printers, the Small Office printer model h. several sub-categories depending on output, i.e., number of pages, colour schemes, usage frequency, and number of users. Therefore, RIP's competitors provide more diversity and price range to consumers with specific requirements (which constitutes approx. 40% of the demand). However, RIP has a much larger sales output, and resultant profits, in the Delhi NCR region. This is primarily because of the lower prices it offers for its toner and ink canridges, which is very appealing for repeat customers. R1P's sales figures A FY 2020-21 are as follows, 
• Out of 5 lalth inkjet printers sold in Delhi NCR, RIP sold 4 lakh printers; • Out of 1 lakh laserjet printers sold in Delhi NCR, RIP sold 55000 printers. 
In July 2021, to boost its after-sales service, RIP starts selling its Small Office model printers to only those customers who also agree to enter life-long annual maintenance contracts (hereinafter, AMC) with RIP. Asa result, a consumer group complains to the Competition Commission of India (hereinafter, CC, alleging that RIP is abusing its dominance in the marketfor printers in Delhi NCR, since RIP's market share was more than 50, in 2020-21. 
At the same time, Sister Tech Services Pvt. Ltd. (hereinafter, Sister Tech), which specialises in the manufacture and supply of industrial size printers for companies and enterprises, files a similar complaint with the CCI. Its allegations are that that (i) RIP's arrangement with government manufacturers of toner powder and printer ink, as well as (ii) RIP's exclusive agreement with ttto government offices and public sector undertakings in Delhi NCR (where most government offices are located), provides it with a substantial degree of power in the market far primer, in India, in general and the market, enterprise model primers in North India, in particular. Sister Tech further alleges that the introduction of the AMCs led to en abuse of dominance by RIP in both these markets. 
In this background, .rover the following questions: 
6. Please assess whether the relevant market definition presented by the consumer group is correct or not, or whether sub-markets can be defined. (5 marks, 500 wards) 
7, Please assess whether the relevant market definitions presented by Sister Tech are correct or not, or whether sub-markets can be defined. (5 marks. 500 words) 

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