ISSUE 1

I. Whether pre-loading of Eato Keto on the Fitness Freak device interface amounts to
anti-competitive conduct under the Indian Competition Act?

1. The Counsel on the behalf of the Informants humbly submit before this Hon’ble
Competition Commission of India that Fitness Freak Private Limited has violated
several sections of the Indian competition Act by entering into anti competitive
agreements and abusing its dominant position. The arguments will be submitted in
the following subissues.

a) Fitness Freak Pvt Ltd holds a dominant position in the fitness market.
b) The agreements entered into between Fitness Freak and Eato Keto are Anti-
Competitive in nature.
c) Fitness freak has imposed various restrictions upon its consumers.
d) Fitness freak has abused its dominant position in the fitness market to protect its
position in the app market.

1.1. Fitness Freak Pvt Ltd holds a dominant position in the fitness market.

2. ‘Dominant Position’ in the Indian Competition Act, 2002 is defined as a position of

strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to
(i) operate independently of competitive forces prevailing in the relevant market; or
(ii) affect its competitors or consumers or the relevant market in its favour. Therefore,
it is important to establish that Fitness Freak holds a dominant position in the fitness
market before any cause of action is initiated.

3. Section 19, subsection 4 of the Act provides factors that have to be considered by the
Commission while inquiring on whether an enterprise enjoys dominant position or
not. Since Fitness Freak’s incorporation and the launch of its product Digital PT in
2018, it had garnered approximately 15,30,500 customers over a period of 3 years. In
2018, Fitness Freak’s consumer base nearly doubled after it allowed third party
content creators to upload their content on their platform. According to the statistics,
Fitness Freak has more consumers than any of the other fitness apps and gyms in
 India. The counsel humbly contends before the CCI that the condition of market size
provided under section 19(4)(b) of the act is thereby satisfied.

4. Fitness Freak’s Digital PT which is a 56 inch vertical screen with a high resolution
camera and LIDAR depth sensors provide feedback to its consumers on their workout
which is a trait that is missing in other fitness applications. Not only has its consumer
base increased as discussed in para (3), but also the frequency of workouts has
considerably increased within a period of 6 months. The Digital PT is also used by
many gyms. The device has increased the exercise frequency of the people who used
to workout and has enabled several other consumers to start working out. A number of
people who prefer exercising at their homes and those people whose gyms use the
Digital PT have been dependent on the device. The Counsel submits before the
Hon’ble commission that Section 19(4)(f) of the Act is thereby satisfied.

5.