CCI penalty on Tyre manufacturing companies for price manipulation upheld by the Supreme Court

Tags: Economics/Business

The Supreme Court has upheld the Competition Commission of India (CCI) decision to impose a penalty on Major tyre manufacturing companies for price manipulation.

• CCI had imposed a fine of around Rs ₹1,788 crore for cartelisation on Apollo Tyres, MRF, CEAT, Birla Tyres, JK Tyre and Industries and Automotive Tyre Manufacturers Association (ATMA). 
• CCI imposed penalties of ₹425.53 crore on Apollo Tyres, ₹622.09 crore on MRF Ltd, ₹252.16 crore on CEAT Ltd, ₹309.95 crore on JK Tyre and ₹178.33 crore on Birla Tyres and a fine of ₹8.4 lakh was imposed on ATMA.
• The tyre companies were found guilty of section 3 of the Competition act 2002, which prohibits anti competitive agreements. 
• According to CCI these tyre companies had exchanged price-sensitive data amongst them through the platform of ATMA, and had taken collective decisions on the prices of tyres.

Competition Commission of India Chairman: Dhanendra Kumar.

Headquarters of CCI: New Delhi