Supreme Court Asks CCI to Reconsider Tyre Company Penalties

Supreme Court urges CCI to review penalties imposed on tyre companies.

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Penalties and Practices

Back in August 2018, the Competition Commission of India (CCI) took action against tyre companies. They were hit with penalties totaling more than INR 1,788 crore and were told to stop unfair business practices.

MRF's Appeal and Supreme Court's Notice

Now, MRF Ltd, a tyre maker, is challenging the fine imposed by CCI. The National Company Law Appellate Tribunal (NCLAT) asked CCI to review the penalties they imposed on tyre companies for suspected cartelization and price manipulation. The Supreme Court is looking into this appeal by MRF. They've also combined it with CCI's appeal.

NCLAT's Decision and Domestic Industry

NCLAT wanted CCI to re-examine errors and reconsider the penalties. They emphasized the importance of supporting the domestic tyre industry and the country's economic development, as per the objectives of the Competition Act.

Penalties and ATMA's Role

Here's a breakdown of the penalties:

• Apollo Tyres: INR 425.53 crore
• MRF Ltd: INR 622.09 crore
• CEAT Ltd: INR 252.16 crore
• JK Tyre: INR 309.95 crore
• Birla Tyres: INR 178.33 crore
• Automotive Tyre Manufacturers Association (ATMA): INR 8.4 lakh and a directive to stop setting prices through member companies. The regulator found that tyre manufacturers were sharing price-sensitive information and making pricing decisions through ATMA's platform.

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