On January 24, 2018, CCI dismissed an information filed by Asmi Metal Private Limited (‘Asmi’) against SKF India Limited (‘SKF’), alleging abuse of dominance under Section 4 of the Competition Act. Asmi was inter alia engaged in the business of supplying customized bearings to SKF as per its specific requirements, which SKF further sold in the market for automobiles and electrical products. It was alleged that SKF forced Asmi to make irrelevant expenditures on expansion of manufacturing facilities based upon assurances of refunds and subsequently defaulted on these payments. Further, it was alleged that SKF induced Asmi into undertaking various commitments at its behest and thereafter indiscriminately, denied any liability towards the losses incurred by the Asmi. The entire chain of events occurred over a period of time spanning from 2004 until 2017.CCI noted that most of the instances of the alleged abuse of dominance took place before the Competition Act came into effect in the year 2009 and therefore, only assessed the conducts that either continued or took place post 20 May 2009.CCI referred to its earlier decisions to define the market as the ‘market for industrial bearings in India’ without further distinguishing between various classes of such bearings. In its examination of the key players in the relevant market, CCI noted that while there were three top companies in the relevant market, including SKF, none of the players enjoyed a position of strength for a long duration. Further, CCI also noted that imports accounted for around 44.8% of the market for mechanical bearings and posed competitive constraint on domestic manufacturers’ ability to raise prices. Accordingly, CCI held that SKF was not in a dominant position and therefore, its conduct could not be examined under Section 4 of the Competition Act.

*Case No. 66 of 2017.