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ARTICLE · 04 DECEMBER 2018

Parallel Pricing By Itself Cannot Be Construed As Collusive Bidding: Supreme Court

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The D.G. concluded that there existed cartel like behavior on part of the bidders.

IndiaAntitrust/Competition Law
Divya Harchandani
Divya Harchandani
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Introduction

The Supreme Court, in a recent judgment in Rajasthan Cylinders Containers Ltd. vs. Union of India & Ors. on October 01, 2018, set aside the order passed by Competition Appellate Tribunal (COMPAT) wherein the Appellants/Suppliers of Liquefied Petroleum Gas (LPG) Cylinders were penalized for indulging in cartelization, thereby influencing and rigging prices in violation of Section 3(3)(d) of the Competition Act, 2002 (the Act). The Appellants are manufacturers of 14.2 kg LPG cylinders, which are required by only three oil companies in India i.e. Indian Oil Corporation Ltd. (IOCL) being the leading market player with 48% market share along with Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL). The suo-moto proceedings in the matter were started by the Competition Commission of India (CCI) after receiving complaints about unfair conditions in a tender floated by IOCL for supply of 10.5 lakh 14.2 kg LPG cylinders. The

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