The Competition Commission of India (CCI) has imposed a fine of Rs 6700 Crore on 10 cement companies and their associated Organization – Cement Manufacturers Association (CMA) for cartelization.
The CCI considered the matter after Competition Appellate Tribunal last December set aside its ruling and asked CCI to take-up case afresh. The CCI has levied penalties on 10 cement companies viz. ACC, ACL, Binani, Century, India Cements, JK Cements, Lafarge, Ramco, UltraTech and Jaiprakash Associates.
The CCI noted that the cement companies used the CMA platform and shared details relating to prices,capacity utilization, production and dispatch, which allowed them to restrict supplies in the market.
What is cartelization?
- Cartelization come from Cartel which means a condition where competing firms form an agreement to control prices or exclude entry of a new competitor in a market.
About Competition Commission of India (CCI)
- CCI is a quasi-judicial statutory body established under The Competition Act, 2002.
- It was established in 2003 to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade.
- Its predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission) which was functional prior to 1991 Economic Reforms.