On August 30, 2018, CCI imposed a penalty on Geep Industries (India) Pvt. Ltd. (‘Geep’) and Panasonic Energy India Co. Ltd. (‘Panasonic India’) for participating in a cartel concerning institutional sales of zinc carbon dry-cell batteries, for the period from October 01, 2010 to May 30, 2016. [1] Panasonic India was a contract manufacturer of zinc carbon dry-cell batteries for Geep. CCI directed an investigation into the matter by the Director General (‘DG’) pursuant to a leniency application filed by Panasonic Corporation, Japan (‘Panasonic Japan’) on behalf of itself and its Indian subsidiary, Panasonic India (including the Directors, officers and employees). Notably, Panasonic in the past as well had been party to a cartel concerning zinc carbon dry-cell batteries (Panasonic was granted 100% immunity from penalty, for disclosing the cartel and also for providing vital evidence to the CCI).  As per the Act, any member of a cartel can file a leniency application with the CCI, (at any time prior to the DG submitting its investigation report with the CCI) seeking immunity from penalty in exchange for vital information and evidence of substantial value as regards the existence of the cartel, its members, duration etc.At the outset, CCI clarified that it did not err in identifying Panasonic Japan as an opposite party while directing and investigation into the matter, as it was in fact Panasonic Japan that had filed the leniency application with CCI. Moreover, in any case, DG had not made any observation as regards Panasonic Japan in its investigation report. On merits, CCI considered the provisions of the product share agreement executed between Geep and Panasonic India pursuant to which Geep was not to ‘take any steps which [were] detrimental to [Panasonic India’s] market interests particularly with respect to the market prices which [were to] be reviewed and maintained at agreed levels from time to time’. As per CCI, such clauses inherently impeded competition between two competitors such as Geep and Panasonic India. Thereafter, CCI also clarified that even unilateral dissemination of information (from Panasonic India to Geep) was sufficient for Geep’s liability in violation of Section 3(3). As per CCI, Geep could have refused to enter into any such agreements with such anti-competitive clause (as described above). Further, irrespective of the fact that Geep may not be sharing its strategic market information with Panasonic India, it was aware of Panasonic India’s existing cartel with other battery manufacturers and chose to maintain Market Operating Price (‘MOP’) co-ordination in line with the prices as determined by Panasonic’s existing cartel. DG, in its investigation, also relied on inculpatory evidence comprising e-mail communications and statements of representatives of Panasonic India and Geep.CCI imposed a penalty of approximately Rs 74 crore (approx. US$10 million) (1.5 times the profit for each year of the continuation of the cartel) on Panasonic and a penalty of approx. Rs 10 lakhs (approx. US$12,000) (4% of the turnover for each year of the continuance of the cartel) on Geep. However, in consideration of the fact that Panasonic Japan had filed a leniency application on behalf of itself and Panasonic India (including their employees), disclosing vital information (including evidence on the modus operandi of the cartel) for CCI to form a prima facie opinion regarding existence of the cartel, CCI granted Panasonic a 100% penalty reduction.[1] In Re: Anticompetitive conduct in the Dry-Cell Batteries Market in India v. Panasonic Corporation, Japan & Others, Case No. 02 of 2017 (Order dated August 30, 2018)