May 11, 2020

CCI Dismisses a Suo-Moto Investigation against Alleged Cartelization in Supply of Anti-Vibration Rubber Products and Automotive Hoses

On February 26, 2020, CCI dismissed a suo-moto investigation in relation to alleged cartelization amongst suppliers of (i) Anti-Vibration Rubber Products (‘AVR Products’); and (ii) Automotive Hoses (Water and Fuel) (‘Hoses’), in relation to Requests for Quotations (‘RFQs’) issued by automobile original equipment manufacturers (‘OEMs’)[1].

The investigation began pursuant to a leniency application which disclosed that certain auto-part manufacturers had reached agreements in fixing the price to be quoted for RFQs and allocation of RFQs, by exchanging information through in-person contacts, phone calls, e-mails etc. With respect to supply of AVR Products, CCI observed that while some of the auto-part manufacturers admitted having contacts with their competitors in relation to the RFQs, none of the auto-part manufacturers actually sold the said AVR Products in India.

With respect to supply of Hoses, CCI observed that while some auto-part manufacturers admitted having exchanging information with competitors in relation to the RFQs in India through emails, such emails were dated prior to May 20, 2009, i.e., prior to the enforcement of the relevant provisions of the Act. Further, other auto-part manufacturers who exchanged information after the commencement of the Act did not take part in any information exchange pertaining to the Indian market. Based on the above, CCI concluded that no contravention of the provisions of Section 3 was made out against the manufacturers of AVR Products and Hoses and closed the matter under the provisions of Section 26(6) of the Act.

[1] Suo-Moto Case No. 1 of 2016 (Order delivered on February 26, 2020)

TAGS

SHARE

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.