Competition Commission's report prima facie finds cement companies in violation of Competition Act: Sources

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KEY HIGHLIGHTS

CCI report on cement companies likely to be finalised in a week
CCI prima facie finds cement companies to be in violation of cartelisation
Decision on CCI report on cement companies likely in August

By Meghna Mittal.

New Delhi: Antitrust regulator Competition Commission’s report on cement companies is likely to be finalised in a week. CCI prima facie finds cement companies indulged in price coordination and cartelisation. Report likely to name ACC, Ambuja Cement, UltraTech, Dalmia Bharat, and Shree Cement among others. CCI commission to call these companies shortly to hear their side.

The companies are given the chance before the commission to prove their innocence and listen to their explanation.

The decision by CCI on cement companies reports likely in August. Quantum of penalty to be decided by CCI commission if found guilty. CCI initiated an investigation against cement companies for cartelisation complaints.

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The investigation against complaints of cartelisation by cement companies has been going on by the anti-trust regulator for some time now. Raids were also conducted at the offices of some of these cement companies.

CCI probes complaints of cartelisation or price manipulation in the market to ensure a level-playing field for everyone.

In 2016, CCI penalised 11 cement companies cumulatively Rs 6,300 cr which was subsequently stayed by the Supreme Court. The apex court had asked to deposit only 10% of the penalty amount while staying the order.

CCI also gives approval to the mergers and acquisitions in the various sectors to ensure that there continues to be a level-playing field.

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