Competition watchdog CCI imposes penalty on five tyre manufacturers, ATMA for indulging in cartelisation

In August 2018, the watchdog had imposed a total fine of more than Rs 1,788 crore on Apollo Tyres, MRF, CEAT, Birla Tyres, JK Tyre and Industries and Automotive Tyre Manufacturers Association (ATMA).

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"Aggrieved with the same, the tyre companies preferred SLPs (Special Leave Petitions) before the Hon'ble Supreme Court, which was dismissed vide its order dated 28.01.2022," the regulator said in a release. CCI noted that the case was initiated on the basis of a reference received from the corporate affairs ministry and that the reference was based on a representation made by the All India Tyre Dealers Federation (AITDF) to the ministry.

The Commission found that the tyre manufacturers had exchanged price-sensitive data and had taken collective decisions on the prices of tyres. The Commission also found that ATMA collected and compiled information relating to company-wise and segment-wise data on production, domestic sales and export of tyres on a real-time basis.

Accordingly, the regulator held the five tyre manufacturers and ATMA guilty of contravention of the provisions of Section 3 of the Act, which prohibits anti-competitive agreements including cartels, during 2011-2012.