Indian competition body searches tyre makers’ premises

Indian stock exchange BSE sought clarification from three tyre makers after media outlet CNBC-TV18 reported yesterday that the Competition Commission of India (CCI) had visited their premises as part of its investigation into alleged competition violation and cartelisation. One of the tyre firms, Apollo Tyres Ltd., responded to the BSE query earlier today. The other two manufacturers, Ceat Ltd. and MRF Ltd., have yet to reply.

Commenting on the presence of CCI officials at its premises on 30 March, Apollo Tyres stated: “We are fully cooperating with the anti-trust regulator’s investigation and have provided all the details required.” The tyre maker expressed its “firm view” that is has acted and will continue to act “in compliance with the competition laws.” Apollo’s statement to the BSE reiterated that it “follows the highest level of governance practices and operates within the letter and by spirit of the law.”

HQs & dealers searched

According to CNBC-TV18, representatives from CCI conducted searches within Apollo Tyre’s headquarters in Gurugram, Ceat’s head office in Mumbai and MRF in Chennai. CCI also searched “prominent dealers” of the three manufacturers.

CCI has yet to publish details of its current investigation, but this is not the first time the competition authority has scrutinised the three tyre makers’ activities. In February it shared details of a 2018 ruling against the trio, who engaged in cartel activities together with Birla Tyres, JK Tyre & Industries and the Automotive Tyre Manufacturers Association.