Infosys vs. Cognizant: A Legal Battle Over Market Dominance

In a recent development that has caught the attention of the tech industry, Infosys has filed a counterclaim against Cognizant in a US court. The lawsuit alleges that Cognizant, along with its CEO Ravi Kumar, engaged in anticompetitive practices aimed at stifling competition and maintaining dominance in the healthcare payer software market.

Infosys is seeking triple compensation for damages incurred, along with appropriate legal fees and expenses. This legal action comes six months after Cognizant filed a lawsuit against Infosys, accusing the latter of stealing proprietary information related to its health tech subsidiary, TriZetto.

The Battle Over Healthcare Payer Software

In 2019, Infosys decided to challenge Cognizant’s dominance in the healthcare payer software market by developing a payer software platform called Infosys Helix. The platform was designed to cater to clients' demand for cloud-based products. However, Infosys alleges that Cognizant implemented measures to hinder its efforts in creating a rival software solution, including creating entry barriers and attracting key executive sponsors away from the project.

According to the lawsuit, the primary executive sponsor of Infosys Helix was Kumar, who was Infosys's former president. The document accessed by TOI showed that Kumar's support for Infosys Helix suddenly changed in 2022, leading to delays in the project's completion. After resigning from Infosys, Kumar was announced as Cognizant’s new CEO, further complicating the legal battle between the two tech giants.

Allegations of Anticompetitive Practices

The counterclaim details how Kumar, along with other executives, received confidential updates about the Infosys Helix business plan and product pipeline through 2021. Despite knowing the strategic importance of Infosys Helix in competing against Cognizant, Kumar allegedly pushed back on requests for resources to support its development, suggesting that Infosys should "slow down" its investment in the project.

Cognizant, on the other hand, has stated its commitment to upholding the highest standards of integrity in all business operations. The company has vowed to take decisive action against any allegations that compromise its competitive standing, emphasizing the importance of fair competition in the tech industry.