Competition Commission of India decides the third lesser Penalty case in respect of cartelisation in Indian Zinc-Carbon Dry-Cell Batteries Market

Competition Commission of India decides the third lesser Penalty case in respect of cartelisation in Indian Zinc-Carbon Dry-Cell Batteries Market

Question: In context of cartelisation in Indian Zinc-Carbon Dry-Cell Batteries Market which two companies were granted reduced penalty by Competition Commission of India (CCI).?
(a) Panasonic Energy India Co Limited & Godrej & Boyce Manufacturing Co Limited
(b) Samsung India electronics Pvt. Limited & Airtel
(c) Tata Motors Limited & Tata technologies Limited
(d) All of the above
Answer: (a)
Related facts:

  • On 17th January 2019, The Competition Commission of India (‘CCI’) passed a Final Order imposing penalty on Panasonic Energy India Co. Limited (‘Panasonic’) and Godrej &Boyce Manufacturing Co. Limited (‘Godrej’) for colluding to fix prices of zinc-carbon dry cell batteries in India.
  • In case of Panasonic, CCI granted 100 percent reduction in penalty by calling upon the provisions of Section 46 of the Competition Act, 2002 (‘the Act’) read with the Competition Commission of India (Lesser Penalty) Regulations, 2009 (‘Lesser Penalty Regulations’).
  • From the evidence collected in the case, included an anti-competitive clause in the form of written agreement entered into between Panasonic and Godrej for supply of batteries, and e-mail communications between the key managerial personnel of the two of them, CCI found existence of a bi-lateral ancillary cartel between Panasonic and Godrej in the market of institutional sales of dry cell batteries.
  • Considering all the appropriate factors, penalty on Panasonic was levied at the rate of 1.5 times of its profit for each year from January 2012 to November 2014 amounting to INR 31.76 crores, and on Godrej at the rate of 4 percent of its turnover for each year from January 2012 to November 2014 amounting to INR 85 lacs.

Links:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=187564

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