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

Antitrust watchdog the Competition Commission of India (CCI) on Wednesday imposed penalties on five tyre manufacturers and a tyre makers' association for indulging in caterlisation.

CCI imposed a penalty of Rs 425.53 crore on Apollo Tyres, Rs 622.09 crore on MRF, Rs 252.16 crore on CEAT, Rs 309.95 crore on JK Tyre and Rs 178.33 crore on Birla Tyres and told them to cease and desist from unfair business practices. CCI also slapped a fine of Rs 8.4 lakh on Automotive Tyre Manufacturers Association (ATMA).

AMTA was also directed to disengage and disassociate itself from collecting wholesale and retail prices through the member tyre companies or otherwise. Also, certain individuals of the tyre companies and ATMA were held liable for the anti-competitive conduct, the release said.

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).

| Future-Amazon dispute: SC sets aside Delhi HC orders, remands cases back for fresh decision

"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.