Guwahati: The Competition Commission of India (CCI) issued a final order today against seven (7) companies/firms deemed to have violated Sections 3 (3) (a), 3 (3) (b), 3 (3) (c), and 3 (3) (d) of the Competition Act, 2002 (Act), which prohibit anti-competitive agreements.

The action was started because one of the cartelising businesses filed a reduced penalty application. Under Section 46 of the Act, a cartel member may approach the Commission by filing an application seeking a lighter penalty in exchange for supplying the Commission with complete, truthful, and important disclosures about the putative cartel.

CCI discovered that these seven (07) companies/firms engaged in cartelization in the provision of Protective Tubes to Indian Railways by directly or indirectly establishing pricing, awarding tenders, controlling supply and market, co-ordinating bid prices, and manipulating the bidding process. Regular e-mail conversations between the parties, filing of bids from the same IP addresses by particular parties, and other evidence were presented in the case.

Furthermore, the CCI found ten (10) persons from these seven (07) entities accountable for the anti-competitive behaviour of their respective companies/firms under Section 48 of the Act.

CCI imposed fines of 5% of the average turnover/income on companies/firms and specific persons found guilty of breaking the Act's requirements. However, the smaller penalty applicant received a 100 percent penalty reduction under the requirements of Section 46 of the Act. Following the reduction, the CCI ordered the parties to pay penalties totaling approximately Rs 30 lacs, in addition to issuing a cease-and-desist order.