Fair trade panel finds cartel in tyre sector

21 Sep 2012

1

The Competition Commission has found evidence of cartelisation in the country's tyre manufacturing industry and is expected to issue a preventivve order soon.

The anti-trust regulator has been probing allegations of cartelisation among tyre manufacturers following a compliant. A senior official said on Thursday the commission has found cartelisation in the tyre industry and an order could be issued shortly, according to a PTI report.

The directorate general of the commission, which acts as its investigating arm, has already submitted the report on the issue. However, names were not divulged.

Generally, cartelisation refers to entities entering into agreements whereby they decide not to compete on price or product. Such practices adversely impact overall competition in the market. Cartelisation is prohibited under the Competition Act.

The commission has the mandate to eliminate practices that have an adverse impact on competition and thereby protect the interests of consumers.

Recently, the fair-trade regulator had passed an order against cement companies on charges of cartelisation (See: mpetition panel imposes Rs6,300-crore fine on 11 cement companies).

According to official data, the commission is looking into 39 cases of possible cartelisation, most of which relate to anti-competitive agreements and abuse of dominant market positions by different entities.

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