The CCI had in 2018 imposed a collective penalty of ₹1,500 crore on the companies and the ATMA for indulging in cartelisation. It had also passed a cease-and-desist order.
The case against the tyre manufacturers had been initiated based on a reference received from the Ministry of Corporate Affairs, which in turn was based on a representation made by the All India Tyre Dealers Federation.
The CCI found that the companies and the association had acted jointly to increase the prices of ‘cross ply’ variants sold by each of them in the replacement market, and limited and controlled production and supply in the said market.
The following penalties had been imposed:
-₹425.53 crore on Apollo Tyres;
-₹622.09 crore on MRF Ltd.;
-₹252.16 crore on CEAT Ltd.;
-₹309.95 crore on JK Tyre;
-₹178.33 crore on Birla Tyres;
-₹8.4 lakh on ATMA, along with an order to disengage and disassociate itself from collecting wholesale and retail prices through the member-tyre companies or otherwise.
Source: Barandbench
