The Competition Commission of India (CCI) on June 5 held five companies, including Tata Steel Group company, Tata Bearing guilty for cartelization of automotive bearing prices.
The commission had taken up the case suo moto after FAG Bearings (now Schaefller India) had filed a leniency application. National Engineering Industries, yet another company held guilty, also followed suit subsequently.
Besides these three, SKF India has also been pulled up by the commission. CCI has ruled these companies, in tandem, had worked to pass on increased steel prices since 2009 to the automobile sector.
According to the investigation by the director-general, parties involved sought to revise supply prices of steel bearing to Original Equipment Manufacturers (OEMs) by way of meetings held in 2009 and 2011.
CCI said that the meetings were in contravention of section 3 and 46 of the Competition Act,2002 and could affect the domestic industry adversely. This cartel existed until 2014 and was confined to the Indian markets.
The CCI states it does not intend to levy penalties on the parties concerned but has given a “cease-and-desist” order warning against future indulgence in such activities.