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Infosys Takes Legal Action Against Cognizant: Accusations of Monopoly Abuse in the IT Sector

Infosys Delves into Fringe Antitrust Theories as Cognizant Takes Legal Action

In the unfolding legal saga between Cognizant and Infosys, the former is pressing a U.S. court to dismiss the antitrust counterclaims made by its rival. With roots tracing back to 1994 when co-founders Kumar Mahadeva and Francisco D’Souza established the company, Cognizant argues that Infosys has not substantiated its accusations regarding alleged monopolistic practices that hindered the competition of Infosys’s healthcare platform, Helix, against Cognizant’s TriZetto Software Group.

Legal Tensions Rise: Cognizant’s Rebuttal

Cognizant’s legal team has described Infosys’s opposition brief as revealing the “fragility” of its antitrust claims. They assert that Infosys resorts to “fringe theories” of antitrust law, lacking solid evidence to back its assertions. Cognizant characterized the allegations from Infosys, founded by NR Narayana Murthy in 1981, as “bare-bones” and merely speculative.

  • Key Points from Cognizant’s Argument:
    • Claims lack substantial evidence.
    • Allegations are described as “merely conceivable.”
    • Urging dismissal of the case based on insufficient claims.

Infosys’s Claims: Monopoly and Market Manipulation

Infosys has accused Cognizant of engaging in anti-competitive and monopolistic behavior, alleging that the company inflated prices and obstructed market entry to maintain its sector dominance. In response to these claims, Cognizant challenged Infosys to delineate the relevant market, noting that its 65% market share falls short of the 70% threshold typically necessary for a strong monopolization argument.

Executive Poaching Allegations: The Battle Intensifies

The dispute escalates with Infosys alleging that Cognizant has been poaching high-profile executives, including former CEO Ravi Kumar S. Cognizant refutes these claims, emphasizing that hiring talent from competitors is a standard industry practice and does not breach any legal boundaries.

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The ongoing conflict ignited in August 2024, when Cognizant accused Infosys of misappropriating trade secrets from its TriZetto division. In January 2025, Infosys countered these allegations and sought a Dallas court’s intervention to compel Cognizant to clarify the specific trade secrets in question, intensifying the legal showdown between these two tech giants.

Conclusion

As the legal battles continue, the stakes remain high for both Cognizant and Infosys. With accusations of monopolistic practices and executive poaching, the outcome could significantly impact their operations and reputations in the competitive IT landscape. As the court date approaches, industry observers are keenly watching how this dispute will unfold.

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