Competition Commission rejects complaint against Pangea3

NEW DELHI: Competition Commission has rejected allegations of unfair business practices against legal process outsourcing firm Pangea3 Legal Database Systems.

The complaint was filed by Larry Lee Mccallister, an American citizen, who was earlier working with the firm.

"The case raised no competition issues," Competition Commission of India (CCI) said in an order dated November 6.

There is no prima facie case for it to intervene, the fair trade watchdog stated.

As per the complaint, the non-compete clause in the employment contract was anti-competitive.

Mccallister sent his resignation on July 12 and while accepting the same, he was reminded about the clause that bars him from joining any competitor firm for one year from the date of contract termination.

"A clause in service contract restricting an employee from taking employment with the competitors, after he leaves the employment, for a particular period, raises no competition issue.

"The employee who enters into such contract negotiates his salary/pay package accordingly and takes into calculations even the period for which he would not be able to provide his expertise to competitors," the order said.

The complaint was filed against Pangea3 and its two senior officials.