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2w ago

CCI Launches 90-Day Probe Into Asian Paints Over Dominance Allegations

The regulator cited prima facie evidence of dealer exclusivity incentives alongside input foreclosure to justify a 90-day investigation

Asian Paints faces antitrust heat for alleged unfair practices in market
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Overview

  • On July 1, the CCI found a prima facie breach of Sections 4(2)(a)(i), 4(2)(c) and 4(2)(d) of the Competition Act and instructed its Director General to probe Asian Paints’ market conduct.
  • The Director General has been given 90 days to complete the inquiry into alleged exclusionary dealer incentives and the restraint of suppliers providing raw materials to rivals.
  • Asian Paints said it is reviewing the order, will fully cooperate with the investigation and is exploring appropriate legal recourse.
  • Shares of Asian Paints initially fell nearly 2 percent on the probe announcement before rebounding over 2 percent, and they rose again by about 2 percent in early trading on July 3.
  • The investigation follows a December complaint by Grasim’s Birla Opus division, which challenged Asian Paints’ roughly 39 percent market share and accused it of blocking new entrants.