Asian Paints: CCI finds no case of breach of anti-competitive practices | The Financial Express

Asian Paints: CCI finds no case of breach of anti-competitive practices

In January 2020, CCI had ordered a probe against Asian Paints following allegations by JSW Paints of ‘coercive actions’ that hindered the latter’s entry into certain southern markets.

Asian Paints: CCI finds no case of breach of anti-competitive practices
“Such conduct has been alleged to have created fear amongst retailers and dealers, as a result of which a number of them stopped dealing with JSW Paints,” the petition moved by JSW Paints said.

The Competition Commission of India (CCI) has found no instances of Asian Paints, the largest paints manufacturer in the country, blocking JSW Paints’ foray into certain markets across south India.

The anti-trust body, in its order dated September 8, has stated it did not find any contravention by Asian Paints under provisions of prohibition of anti-competitive agreements, the company said in a regulatory update.

In January 2020, CCI had ordered a probe against Asian Paints following allegations by JSW Paints of ‘coercive actions’ that hindered the latter’s entry into certain southern markets.

JSW Paints launched its decorative paints in May 2019 in Bengaluru and Hubli. Subsequently, it launched the products in Kerala (Kochi and Kozhikode) in June 2019, followed by Telangana (Hyderabad) and Tamil Nadu (Chennai) in August 2019.

JSW Paints alleged that immediately after the launch of its decorative paints, Asian Paints began pressurising dealers who had agreed to stock and display decorative paints manufactured by JSW Paints. Asian Paints allegedly directed dealers to stop dealing with JSW Paints, threatening of stopping supplies and asking them to stop displaying products of JSW Paints.

“Such conduct has been alleged to have created fear amongst retailers and dealers, as a result of which a number of them stopped dealing with JSW Paints,” the petition moved by JSW Paints said.

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