On April 16 the commission’s investigative division issued notices to five leading tyre makers that, combined, control more than 80% of the Indian market: The five include MRF, who alone controls 24%, Apollo (22%), JK Tyres (17%), Ceat (14%) and Goodyear (6%).
The commission will seek details of recent price rises, capacity utilisation, raw material costs, profit margins and other information to establish whether any evidence of collusion and parallel pricing can be found. Should this prove to be the case, the findings will strengthen the position of federal finance minister Palaniappan Chidambaram, who previously indicated that tough measures will be taken against sectors in which monopolistic and oligopolistic behaviour is present.
The director-general of investigation & registration, who assists the commission in investigations, has three months in which to complete the inquiry. On top of any governmental action that occurs as a result of the regulator’s findings, the commission holds the power to order a cessation of collusive activities. Should the companies in question not comply, contempt of court proceedings may well follow. (Tyres & Accessories/Staffordshire, U.K.)
