The competitors watchdog had launched an investigation into attainable abuse of market dominant place by Asian Paints primarily based on a grievance by the JSW Group firm. Primarily based on the findings of the investigation, CCI issued its order final week the place it discovered no wrongdoing on the a part of Asian Paints.
“We don’t agree with the fee’s order that Asian Paints has not abused its dominant place,” AS Sundaresan, the joint managing director of JSW Paints mentioned in a press release Thursday.
“We’re at present reviewing the order and can take applicable steps to guard the pursuits of our clients and sellers for a free and truthful market.”
Authorized specialists mentioned that the recourse accessible to JSW Paints could be to problem the order within the Nationwide Firm Legislation Appellate Tribunal (NCLAT).
“Towards this resolution of competitors fee, aggrieved events can select to train their authorized recourse and file an enchantment earlier than NCLAT and subsequently earlier than Hon’ble Supreme Court docket,” mentioned Tejveer Singh, Associate at DMD Advocates. “Orders handed by the fee underneath sure provisions are appealable and treatment of writ in such circumstances just isn’t accessible.”
JSW Paints is a latest entrant into the ornamental paints market the place Asian Paints holds about 40% share. The corporate had alleged in 2020 that Asian Paints was utilizing its dominant place out there to dam its entry into the states of Karnataka, Telangana and Tamil Nadu.
The grievance mentioned that Asian Paints lowered the credit score restrict and tier of a number of sellers in these states following their dealings with JSW Paints. It was additionally alleged that the dominant participant threatened to cease enterprise with such sellers and compelled them to discard or less-prominently show the promotional materials of the complainant.
Nonetheless, CCI famous through the investigation it was discovered that the credit score restrict in virtually all instances of sellers was lowered resulting from enterprise issues. Equally, it additionally famous that the retail tiers of sellers had been restored previous to the submitting of data within the case. The report acknowledged that Asian Paints didn’t pressurise or affect any seller to take away the JSW promotional materials or tinting machines.
The competitors watchdog mentioned {that a} letter submitted by a seller alleging coercion on the a part of Asian Paints was obtained by JSW Paints with out giving the seller the true context and that the identical seller later dismissed the allegations in opposition to Asian Paints in an affidavit.
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