Infosys Files Lawsuit Against Cognizant, Alleges Unfair Trade Practices in US

The legal battle between Indian IT powerhouse Infosys and US-based Cognizant Technology Solutions has escalated, with new charges filed in a US court. Infosys has accused Cognizant of engaging in anti-competitive practices to maintain its dominance in the healthcare software market, escalating a dispute that began with allegations of trade secret theft.

Infosys vs. Cognizant: New allegations surface

In a new filing in a US district court in Dallas, Texas, Infosys claimed that Cognizant has used its monopoly power to stifle competition via its Cognizant TriZetto Software Group platform. According to the filing, Cognizant used market-controlling tactics such as raising prices by limiting output and preventing competitors from entering the healthcare software market.

According to a report, Infosys claims that Cognizant unfairly used restrictive non-disclosure agreements (NDAs), withheld critical training for its key software products QNXT and Facets, and deliberately influenced Infosys employees to stymie the growth of Infosys' competing healthcare platform Helix.

The 35-page document, filed on March 31, also accuses Cognizant of using exclusionary strategies like'most favoured vendor' (MFV) agreements to maintain its market dominance. Infosys has urged the court to reject Cognizant's motion to dismiss the case, describing the company's actions as "attempted monopolisation" and "unreasonable restraint of trade".