{"id":12815,"date":"2022-02-09T13:19:52","date_gmt":"2022-02-09T07:49:52","guid":{"rendered":"https:\/\/www.tyremarket.com\/tyremantra\/?p=12815"},"modified":"2022-02-09T13:19:52","modified_gmt":"2022-02-09T07:49:52","slug":"competition-commission-of-india-imposes-big-fines-on-major-tyre-makers","status":"publish","type":"post","link":"https:\/\/www.tyremarket.com\/tyremantra\/competition-commission-of-india-imposes-big-fines-on-major-tyre-makers\/","title":{"rendered":"Competition Commission Of India Imposes Big Fines On Major Tyre Makers"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In a major development, the Competition Commission of India (CCI) has imposed hefty fines on the five major Indian tyre makers: Apollo Tyres Ltd., MRF Ltd., CEAT Ltd., JK Tyre and Industries Ltd. and Birla Tyres Ltd. They also fined their association i.e. Automotive Tyre Manufacturers Association (ATMA).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">According to CCI, these <a href=\"https:\/\/www.tyremarket.com\/Car-Tyres\"><strong>tyre makers<\/strong><\/a> have breached Section 3(3) (a) and 3(3) (b) read with Section 3(1) of the Competition Act, 2002 (\u2018the Act\u2019). They were indulged in cartelisation by acting in concert to increase the prices of cross-ply\/bias tyres as well as controlling the production and supply in that market.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The commission informed last week that the aforementioned tyre makers have exchanged price-related data with each other through the ATMA platform. By doing this, they took collective decisions on the prices of tyres.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It is learnt that this case was started on the basis of a reference received from the Ministry of Corporate Affairs (MCA) under Section 19(1) (b) of the Act. The reference in question was based on a representation made by the All India Tyre Dealers Federation (AITDF) to the MCA. After doing their checking and establishing the breach of the act, the commission held the five tyre manufacturers and ATMA guilty of contravention of the provisions of Section 3 of the Act, which prohibits anti-competitive agreements including cartels, during 2011-2012.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Accordingly, the CCI has imposed the following penalties on the involved tyre makers:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">INR 425.53 crore on Apollo Tyres<\/span><\/p>\n<p><span style=\"font-weight: 400;\">INR 622.09 crore on MRF Ltd<\/span><\/p>\n<p><span style=\"font-weight: 400;\">INR 252.16 crore on CEAT Ltd<\/span><\/p>\n<p><span style=\"font-weight: 400;\">INR 309.95 crore on JK Tyre<\/span><\/p>\n<p><span style=\"font-weight: 400;\">INR 178.33 crore on Birla Tyres<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to this, a penalty of INR 0.084 crore was also imposed on ATMA.<\/span><\/p>\n<p><strong>Also Read &#8211;\u00a0<\/strong><a href=\"https:\/\/www.tyremarket.com\/tyremantra\/replacement-tyre-demand-remain-strong-etrma\/\">\u201cReplacement Tyre Demand To Remain Strong\u201d \u2013 ETRMA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a major development, the Competition Commission of India (CCI) has imposed hefty fines on the five major Indian tyre makers: Apollo Tyres Ltd., MRF&#8230;<\/p>\n","protected":false},"author":12,"featured_media":12816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[5709,4213,425],"class_list":["post-12815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-competition-commission-of-india","tag-indian-tyre-makers","tag-tyre-makers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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