Indian Competition Commission's tire company investigation 'resolved and closed'
ERJ staff report (BC)
Chennai: The Indian Competition Commission (CCI)'s investigation into collusive pricing by tire companies has been resolved, the Times of India reported a top tire industry officialas having said. The CCI had been investigating a number of top tire companies following a complaint by the All India Tyre Dealers' Federation (AITDF) against "collusive pricing and restrictive trade practices" of domestic tire majors - Apollo Tyres, MRF, JK, CEAT and Birla Tyres. Three years on, the matter has been "resolved and closed" said Vikram Malhotra, VP-sales & marketing, JK Tyres.
The CCI ordered an investigation in 2010, the final findings of which were given as follows: "The intent and conduct of Automotive Tyre Manufacturers Association (ATMA) as noted from the minutes and circulars clearly reflects that the major domestic tire companies acted in [a] concerted manner, and meeting of mind [sic] has taken place with regard to various issues related [sic] and common to tire industry.
“ATMA provided the platform for exchange and sharing of information related to price, export, import, OEM [sic] etc. to the domestic tire manufacturers. The concerted and uncompetitive behaviour of the domestic tire companies is also reflected from action wherein that [sic] ATMA and its five major domestic tire companies, i.e. Apollo, MRF, JK Tyre, Birla and CEAT have acted in concert in violation of section-3 (3)(a) and 3(3)(b) of the Competition Act (dated May 25, 2011)."
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Full story from Times of India