CCI conducts operations in tire companies

The Competition Commission of India (CCI) has recently raided the headquarters of the tire business, including CEAT, Apollo Tires, MRF (Madras Rubber Factory) and Continental Tires, alleging violation of competition laws in the country. According to sources, Competition Commission of India (CCI) officials conducted raids at various places.

CCI conducts operations in tire companies

Spokesmen for Apollo, Continental and CEAT declined to comment to media outlets. All emails, messages and calls remain unanswered. According to a source, the sale of tires for public transport vehicles in the northern state of Haryana involved an unfair investigation into unfair trading practices and the use of bid-rigging.

Earlier in February this year, we reported that the Supreme Court of our country had dismissed a petition filed by these prominent tire manufacturers challenging the regulator’s order to impose a total fine of over ₹ 1,788 crore on them for manipulating prices as a cartel.

According to the statement, the Competition Commission of India (CCI) announced on February 2, 2022 that in August 2018, it had fined Apollo Tires, MRF, CEAT, Birla Tires, JK Tires and Industries and the total total tire manufacturers association. 1,788 crore (ATMA). “Tire manufacturers have shared price-sensitive information among themselves through their organization’s platforms, such as the Automotive Tire Manufacturers Association (ATMA), and have made joint decisions on tire prices,” the companies were banned. Between 2011-2012, the CCI estimated that corporations had violated Section 3 of the Competition Act, which prohibits anti-competitive agreements.

Apollo Tire received a fine of Rs 425.53 crore, MRF Limited received a fine of Rs 622.09 crore, CEAT Limited received a fine of Rs 252.16 crore, JK Tire received a fine of Rs 309.95 crore and Birla Tire received a fine of Rs 178.33 crore. ATMA was also fined Rs 8.4 lakh, and ordered to disassociate and disassociate itself from member tire companies or otherwise collect wholesale and retail prices, while the tire company and several ATMA individuals were arrested for misconduct. Was done.

In retaliation, the tire manufacturers filed an appeal in the Madras High Court which was dismissed on January 6 this year, when “outraged, the tire companies opted for SLPs (special leave application) before the Hon’ble Supreme Court, which was dismissed by order dated 28.01.2022. The CCI said in a statement.

The Competition Commission of India further stated that the investigation was initiated on the basis of a referral from the Ministry of Corporate Affairs. After a representation from the All India Tire Dealers Federation (AITDF), the ministry later revealed that it had received a referral on the matter. After further investigation by CCI, it was discovered that corporations and associations were involved in cartelization by collaborating to increase the price as well as limit the variety of cross-ply / bias tires sold in the replacement market by each of them. Market production and supply control.

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