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DG to initiate an investigation against Asian Paints for indulging in anti-competitive activities: CCI

January 16, 2020[2020] 113 312 (CCI)

COMPETITION LAW : Where informants JSW Paints filed a complaint against OP Asian Paints Ltd., alleging contravention of relevant provisions of sections 3 and 4, and it was found that evidence provided by JSW Paints was prima-facie sufficient to indicate that Asian Paints had denied access to distribution channels in relevant market to JSW Paints by threatening and coercing such dealers through various means. Thus, Asian Paints, prima-facie, appeared to be in contravention of provisions of section 4(2)(c) . Further, Asian Paints threatened dealers to discontinue their supplies, disallowed discretionary discounts, etc. These restraints appear to be in nature of exclusive supply agreement and refusal to deal. These restrictions limited dealers from procuring same/similar products from other sources at a cheaper price. In view of foregoing, Commission was of opinion that there existed a prima facie case which required an investigation by DG, to determine whether same had resulted in contravention of provisions of sections 4(1) and 3(1) read with section 3(4) thereof

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