CCI Dismisses Allegations of Cartelization and Abuse of Dominance against Asian Paints Limited and Others

On April 12, 2021, CCI dismissed allegations of imposition of abuse of dominance and cartelization against Asian Paints Limited (‘Asian Paints’) and two individuals namely Mr. K.B.S. Anand and Mr. K. Sundaram. [1]

The informant, a small scale business engaged in manufacturing of primers and paints under the brand-name ‘Arcus’, had alleged that Asian Paints filed a false criminal case against it in the court of the Learned District Munsif-cum Judicial Magistrate, Arcot, alleging that the informant sold damaged products falsely claiming itself to be Asian Paints. It was alleged that this was a frivolous allegation raised by Asian Paints in abuse of its dominant position to drive competition out of the market by creating barriers to entry and deny market access to competitors.

CCI observed that the Informant failed to show any facts or evidence on record which indicate violation of the provisions governing anti-competitive agreements since no horizontal or vertical relationship between Asian Paints and the informant existed. Further, CCI agreed with Asian Paints’ contention that the informant failed to show how the competition was affected as a result of Asian Paints exercising its legitimate rights to protect its intellectual property rights.

Based on the above, CCI dismissed the case under Section 26(2) of the Act.

 

[1] Case No. 53 of 2020, Order dated April 12, 2021

Published In:Inter Alia Special Edition - Competition Law - May 2021 [ English
Date: May 31, 2021