Competition News Bulletin (October 2016)

I. CARTELS AND ANTI-COMPETITIVE AGREEMENTS

INDIA

Competition Commission of India (CCI) re-imposes penalty on 11 cement companies for cartelisation

CCI by its order dated August 31, 2016 has re-imposed penalties on 11 cement manufacturers and Cement Manufacturers Association (CMA) for violation of Section 3(3)(a) and 3(3)(b) of the Act. The CCI had earlier imposed a penalty under Section 27 of the Act in the same case through its order dated 20 June 2012. However, the COMPAT set aside the CCI order on December 11, 2015 with the direction that the CCI shall hear the parties afresh and pass fresh order in accordance with law.

The Information, filed by the Builder Association of India alleged cartelization by cement manufacturers on account of increased prices of cement bags despite fall in production costs, reduction in capacity utilization, non-passing of reduced costs to customers by cement manufacturers.