_large.png)
12th August 2021, Mumbai:
According to the Indian Competition Commission, Grasim Industries has misused its dominant position in the supply of a certain staple fibre by charging discriminatory rates, limiting market access, and placing extra requirements on its customers.
According to an order dated August 6, the commission ordered the firm to halt and desist from engaging in such acts, which were determined to be in violation of the Competition Act. According to the CCI, the company "abuses its dominant position in the relevant market of 'the market for the supply of VSF to spinners in India' by charging discriminatory rates, restricting market access, and imposing extra responsibilities on its customers."
"While the Company has yet to obtain a certified copy of the stated ruling," Grasim Industries wrote in a regulatory filing dated August 9, "it thinks that on merits it has sufficient grounds for an appeal." The regulator decided not impose any monetary penalties on the company, despite the fact that it had already been fined Rs 301.61 crore by an order issued in March 2020 for basically similar behaviour. Furthermore, the period of violation in this case (2017-18) overlapped with the period of contravention in the preceding case (2012-2017).
The commission stated that Grasim Industries is the country's sole producer of viscose staple fibre (VSF) and holds a dominant position in the relevant market for VSF supply to Indian spinners. The only other way for spinners in the country to get VSF was to import it, which was not an economically viable option. "The market for the supply of VSF to spinners in India," as defined by the CCI, was the relevant market. The fair trade regulator stated that Grasim Industries' actions in requesting details of VSF consumed by domestic spinners in order to provide a discount are nothing more than an attempt by a dominant undertaking to exert control over the entire market in its favour by imposing conditions that not only impose supplementary obligations on small players but also restrict their freedom of trade.
"The Commission is satisfied that by compelling spinners to submit output details, OP has asserted its market dominance over small players and has acted in an unfair way," the statement added. The regulator stated that in the instance of one of the informants, Grasim Industries withdrew all discounts/credit notes, making the supply of VSF expensive for it and making the VSF yarn it created uncompetitive. The injunction was issued after three informants made complaints against the company alleging that it had abused its dominating position. The commission had ordered the director-general (DG) to investigate the situation and provide a report.
TOP 5:
• Permitting malls to reopen can save lakhs of jobs: Kumar Rajagopalan, CEO, RAI
• Supreme Court stalls Reliance-Future deal
• H&M to join Influencer-based social commerce platform 'Trell'
• Mega textile park scheme waiting in the wings: Proposal with Cabinet
