CCI Finds BFI Prima Facie Liable for Abuse of Dominance and Anti-Competitive Conduct; Directs Investigation
Sangeetha Prathap
The Competition Commission of India (CCI) has passed a prima facie order directing a detailed investigation against the Basketball Federation of India (BFI) for alleged abuse of its dominant position and implementation of anti-competitive arrangements in violation of the Competition Act, 2002. The order was issued by a three-member bench comprising Ms. Ravneet Kaur (Chairperson), Ms. Sweta Kakkad (Member) and Mr. Deepak Anurag (Member).
The case originated from information filed by Elite Pro Basketball Pvt. Ltd. (EPBL), which intended to launch a national-level 5x5 professional basketball league after signing approximately 160 players. EPBL approached BFI in early 2022 seeking approval, but no response was received. When EPBL conducted player try-outs, BFI officials publicly claimed that no approval had been sought despite prior intimation. The situation escalated when, in October 2022, the Vice President of BFI allegedly pressurised the hospitality venue of the next try-out program, resulting in cancellation of the event. Following this, EPBL players reported that BFI had made participation in national tournaments conditional upon signing a declaration confirming non-association with unapproved leagues, including EPBL.
Tensions intensified after EPBL announced its player roster, triggering scrutiny from officials of the Indian National Basketball League (INBL) who demanded players disclose whether they had signed with any unauthorized league. BFI later issued a circular warning schools, universities, referees, coaches and players against taking part in EPBL promotional events, threatening disciplinary consequences for non-adherence. EPBL also contended that meetings with the newly elected BFI President were unsuccessful due to alleged exorbitant financial demands in exchange for permitting the league, prompting the organisation to approach CCI alleging foreclosure of market access, player restrictions and anti-competitive conduct.
The Commission first assessed whether BFI falls within the statutory definition of an "enterprise" under Section 2(h) of the Competition Act. It held in the affirmative, noting that BFI supplies economically relevant services and earns substantial revenue through admission fees, player registrations, sponsorships and tournaments, placing it well within the scope of an enterprise.
After defining the relevant market as the market for organizing basketball leagues, tournaments and events in India, CCI found that BFI, as the exclusive national body affiliated with FIBA and the authority regulating the game of basketball in the country, wields significant control over the organization and approval of all major basketball events. This, the Commission held, places BFI in a dominant position in the relevant market.
CCI also took strong note of a circular dated 26 September 2023 issued by BFI directing all players, referees and coaches to participate exclusively in BFI-approved events, warning that taking part in any unrecognized league—such as EPBL—would result in strict action. The Commission observed that such restrictions effectively deny market access to independent basketball organizers and deter athletes and officials from engaging with alternate tournament platforms. It further noted that compelling exclusive participation in BFI-approved competitions operates in the nature of an exclusive distribution or refusal-to-deal arrangement, raising serious competition concerns under the Act.
On the basis of these facts, CCI concluded that a prima facie case of abuse of dominance and anti-competitive conduct exists against BFI. The Commission has directed the Director General to conduct a detailed investigation and submit its report. The matter will now proceed before the office of the Director General for probe under Section 26(1) of the Competition Act.
Cause Title: Elite Pro Basketball Private Limited vs. Basketball Federation of India
Case No: Case No. 10 of 2024
Coram: Ms. Ravneet Kaur (Chairperson), Ms. Sweta Kakkad (Member), Mr. Deepak Anurag (Member)
