The Competition Commission of India (CCI) has into Asian Paints over alleged abuse of its dominant position in the market after receiving information from Birla Paints.
Asian Paints is a well-known wall paint manufacturer in India and Birla is a new market player recently launched by the Aditya Birla conglomerate.
Asian Paints faced a after the CCI received alleged abuse information from JSW Paints, part of the JSW group of companies. In this case, the CCI found no case of competition breaches.
Birla Paints alleges that Asian Paints has abused its dominant market position by ensuring exclusivity through various measures including:
- Offering additional discounts and incentives, including foreign travel, to dealers;
- Threatening dealers against stocking Birla Paints’ products by imposing unfair conditions on them if they engage with company;
- Directing dealers to not use Birla Paints’ machines;
- Restraining third party entities and suppliers of raw materials from giving their goods and services to Birla Paints;
- Restricting Birla Paints’ logistics and transportation by coercing landlords, and clearing and forwarding agents to not engage with the company; and
- Running a fake smear campaign against Birla Paints.
After an analysis, the CCI found a prima facie case against Asian Paints.
Consequently, the CCI has ordered a probe and the investigator has been directed to conclude and submit findings within 90 days.
