CCI charges Rs 1,788 cr penalty on 5 tyre makers for cartelisation
ROADS & HIGHWAYS

CCI charges Rs 1,788 cr penalty on 5 tyre makers for cartelisation

Fair trade regulator Competition Commission of India (CCI) has inflicted a penalty of more than Rs 1,788 crore on five tyre firms and their Association Automotive Tyre Manufacturers Association (ATMA) for indulging in alleged cartelisation.

The five tyre firms comprise MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd and Birla Tyres Ltd. The Commission inflicted penalties of Rs 622.09 crore on MRF Ltd, Rs 425.53 crore on Apollo Tyres, Rs 309.95 crore on JK Tyre, Rs 252.16 crore on CEAT Ltd and Rs 178.33 crore on Birla Tyres, besides passing a cease and desist order. Additionally, a penalty of Rs 0.084 crore was also charged on ATMA. ATMA was ordered to disengage and disassociate itself from collecting wholesale and retail costs via the member tyre firms or otherwise.

The Commission noted that the tyre producers had exchanged price-sensitive data amongst them via the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the costs of tyres.

The Commission also found that ATMA collected and compiled data relating to company-wise and segment-wise information (both monthly and cumulative) on production, domestic sales and export of tyres on a real-time basis.Therefore, the Commission stated that the sharing of such sensitive data made coordination easier amongst the tyre firms.

The fair trade regulator in a release told the media that CCI had passed a final order dated 31.08.2018 against five Tyre firms namely MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd, Birla Tyres Ltd and their association i.e. Automotive Tyre Manufacturers Association (ATMA) for indulging in cartelisation by acting in concert to raise the costs of cross-ply or bias tyres variants sold by each of them in the replacement market and to limit and manage production and supply in the said market, thereby violating the conditions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Competition Act, 2002.

Image Source

Also read: CEAT to double its business in Europe in next 2-3 years

Fair trade regulator Competition Commission of India (CCI) has inflicted a penalty of more than Rs 1,788 crore on five tyre firms and their Association Automotive Tyre Manufacturers Association (ATMA) for indulging in alleged cartelisation. The five tyre firms comprise MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd and Birla Tyres Ltd. The Commission inflicted penalties of Rs 622.09 crore on MRF Ltd, Rs 425.53 crore on Apollo Tyres, Rs 309.95 crore on JK Tyre, Rs 252.16 crore on CEAT Ltd and Rs 178.33 crore on Birla Tyres, besides passing a cease and desist order. Additionally, a penalty of Rs 0.084 crore was also charged on ATMA. ATMA was ordered to disengage and disassociate itself from collecting wholesale and retail costs via the member tyre firms or otherwise. The Commission noted that the tyre producers had exchanged price-sensitive data amongst them via the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the costs of tyres. The Commission also found that ATMA collected and compiled data relating to company-wise and segment-wise information (both monthly and cumulative) on production, domestic sales and export of tyres on a real-time basis.Therefore, the Commission stated that the sharing of such sensitive data made coordination easier amongst the tyre firms. The fair trade regulator in a release told the media that CCI had passed a final order dated 31.08.2018 against five Tyre firms namely MRF Ltd, Apollo Tyres Ltd, JK Tyre & Industries Ltd, CEAT Ltd, Birla Tyres Ltd and their association i.e. Automotive Tyre Manufacturers Association (ATMA) for indulging in cartelisation by acting in concert to raise the costs of cross-ply or bias tyres variants sold by each of them in the replacement market and to limit and manage production and supply in the said market, thereby violating the conditions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Competition Act, 2002. Image Source Also read: CEAT to double its business in Europe in next 2-3 years

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors...To read the full article Click Here..

Next Story
Real Estate

Serene Communities, Prathima Group Invest Rs 4 billion in Hyderabad

Serene Communities by Columbia Pacific, India’s largest senior living operator, has partnered with Prathima Group to develop two senior living projects in Hyderabad, marking its entry into Telangana. The collaboration represents an investment of Rs 4 billion, combining Serene’s international expertise with Prathima’s local development experience. The first project, Serene BILVANI One, launched in Shankarpally, is Hyderabad’s first premium senior living community. Designed for independent and active ageing, it features senior-friendly architecture, barrier-free design, and wellness..

Next Story
Infrastructure Urban

India remains our most important market

Foundamental, the world’s leading venture capital platform focused on the project economy, has launched its third fund to strengthen its presence in India, APAC, and other global markets. Led by Berlin-based Managing Partners Shubhankar Bhattacharya and Patric Hellermann, Fund III aims for a final close by the end of 2025. In an exclusive interaction with CW, Bhattacharya shares insights on the fund’s mandate, India’s role in their strategy, and the opportunities they see in the construction-tech and project-based sectors. Can you briefly explain Fund III’s mandate and how In..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?