Delhi News | The Competition Commission of India (CCI) has imposed a total penalty of Rs 1,788 crore on five major tire companies and their consortium for violating competition law by colluding to influence the market.
These companies include Apollo Tires Limited, MRF Limited, CEAT Limited, JK Tire & Industries Limited, Birla Tires Limited and their association, according to a release issued by the Commission on Wednesday.
The Commission had passed a final order against these companies on 31st August 2018 and in which these companies and their association Automotive Tire Manufacturers Association (ATMA) have been accused of artificially inflating the prices of cross ply/bias tires sold in the general market. He was convicted of violating section 3(1) of the Competition Act, 2002 (the Act) and other sections by working in groups to limit and control production and supply in the market
Tire companies had thereafter filed a Special Leave Petition (SLP) in the Hon’ble Supreme Court, which was dismissed by the Court on January 28, 2022.
The Commission noted that tire manufacturers, through the forum of their association, the Automotive Tire Manufacturers Association (ATMA), had exchanged price sensitive information among themselves, and decided on tire prices together. The Commission also observed that ATMA collected and compiled information relating to company-wise and segment-wise data (both monthly and cumulative) on production, domestic sales and exports of tires on real time basis.
The CCI held five tire manufacturers and ATMA guilty of violating the provisions of Section 3 of the Act. The competition regulator paid Rs 425.53 crore on Apollo Tires, Rs 622.09 crore on MRF Ltd. 252.16 crore on CEAT Ltd. 309.95 crores on JK Tires and Rs 178.33 crores on Birla Tyres and ordered them to stop and abstain from factionalism to avoid market competition. Along with this, the Commission has also imposed a penalty of Rs 0.084 crore on their Association (ATMA) and directed it to abstain from collecting wholesale and retail price through member tire companies or otherwise.
