New Delhi, Fair trade regulator CCI has dismissed a complaint against Jindal Stainless Ltd (JSL) and China-based Eternal Tsingshan Group and its entities, holding that no prima facie case of contravention of competition norms was made out.
The Competition Commission of India (CCI) in an order passed on Tuesday said the case was initiated after a complainant alleged that JSL, Eternal Tsingshan Group — engaged in stainless steel and nickel industry in Indonesia — and its entities had contravened provisions of Section 3 and 4 of Act.
Sections 3 and 4 pertain to anti-competitive agreements and abuse of dominant position, respectively.
The complainant alleged that these arrangements resulted in exclusive dealing and refusal to supply stainless steel slabs and stainless-steel hot rolled coils (SS HRC) to other Indian manufacturers, thereby denying market access to competitors.
It also alleged that the conduct of JSL under its Jindal Saathi programme and the associated Memorandum of Understanding created a de facto exclusivity arrangement and lock-in effect in the downstream market.
However, CCI observed that the complainant (informant) had not furnished any direct evidence showing that any other competing manufacturer had sought procurement of stainless steel slabs or SS HRC from the suppliers concerned and was denied supply.
It further noted that the availability of multiple domestic and international sources of stainless steel slabs, HRC and other inputs and did not demonstrate creation of entry barriers, foreclosure of competition or appreciable adverse effect on competition.
Allegations against OPs (JSL and Eternal Tsingshan Group and its entities) in respect of exclusive dealing and refusal to deal arrangements leading to foreclosure of access to SS Slabs and SS HRC appear to be unfounded, and prima facie there appears to be no violation of Sections 3(4)(b) and 3(4)(d) of the Act, the regulator said.
With regard to the ‘Jindal Saathi’ programme, the competition watchdog observed that participation was voluntary and is not a precondition for purchasing material from JSL.
It also found no evidence of exclusivity, customer lock-in or denial of market access, it added.
“The Commission does not find alleged contravention of the provisions of Sections 3(4) and 4 of the Act against OPs being made out. In view of the foregoing, the Commission is of the opinion that there exists no prima facie case of contravention of the provisions of the Act,” CCI said in the order. PTI
