CCI Orders Probe Against Asian Paints for Alleged Dominant Position Abuse

The Competition Commission of India has ordered an investigation against Asian Paints, India's largest paint manufacturer, for alleged abuse of dominant position in response to a complaint by Grasim Industries, a company of Aditya Birla Group. The investigation report is to be submitted within 90 days. The regulator clarified that the observations made were not final views on the case merits. Asian Paints stated that it is reviewing the order and will take appropriate legal action while cooperating with the investigation.

Grasim accused Asian Paints of offering discounts and incentives to dealers for exclusivity, increasing sales targets for dealers who dealt with Birla products, and coercing landlords and transporters to avoid engaging with Birla. The CCI's initial review found Asian Paints imposing unfair conditions on dealers, creating barriers to new entrants, and partially foreclosing competition in the market.

Asian Paints, holding 53% of India's paint production capacity, faces allegations of anti-competitive behavior in the Rs 80,000-90,000 crore paint market. Despite its dominance, the company has faced competition from Birla Opus, which quickly gained a 7% market share. In a previous case, CCI dismissed a complaint by JSW Paints against Asian Paints for alleged misuse of dominant position and denial of market access.

According to the source: The Economic Times.