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Tuesday, 05 July 2011 |
Major textile makers, including Grasim, Modi Polymer and
Bombay Dyeing, have been dragged to the competition watchdog CCI for allegedly abusing their dominant market position by dictating prices and sale terms. In a complaint made to the Competition Commission of India (CCI), an individual has alleged that these 8-10 big polyester manufacturers collude together to dictate to smaller firms on what price they should sell their products. They are supposed to have banded together and dictated to smaller firms at what price they should sell their products. These 10 or so big polyester manufacturers are also accused of dictating who these smaller manufacturers should sell their products to. The complainant has also alleged that large manufacturers also influenced the time-to-time imposition of anti-dumping duties on raw material so that they could control polyester in the domestic market.
The complaint has been admitted under Sections 3 and 4 of the Competition Act, 2002. Sections 3 and 4 of the Competition Act pertain to anti-competitive agreement and abuse of dominant position, respectively. The Commission, which became fully functional in 2009, with the appointment of a chairman and six members, has the power to check anti-competitive agreements and abuse of dominant position, drawn from Sections 3 and 4 of the Competition Act, 2002. Beginning June 2011, the Commission also received powers to check high-voltage mergers and acquisitions, with the notification of Section 5 and 6 of the Act. |
