[Economy] Competition

Commission of India order

against Cement Companies
1. What is Competition Commission of India
(CCI )?
2. Case of Cement Companies
3. Case of Oil Companies

What is Competition
Commission of India
(CCI )?

It is a statutory body that monitors anticompetitive agreements, abuse of dominant

position by enterprises and regulates
combinations (acquisition, acquiring of control
and M&A), which causes or likely to cause an
adverse effect on competition within India.
Commission comprises a Chairperson and six
members. Ashok Chawla is the current
Chairperson of the CCI

Case of Cement Companies

CCI investigation found that the cement

companies had intentionally not utilised the
available capacity so that there are reduced
cement supplies in the market and they can
raise prices in times of higher demand.
The cement manufactures were instrumental in
limiting and controlling supplies in the markets

and determining prices through an anticompetitive agreements.

The commission stressed that such anticompetitive agreements are detrimental not
only to consumers but also to the entire
economy as cement is very crucial input in
construction and infrastructure industry, vital
for economic development.

Guilty

ACC, Ambuja Cements, UltraTech Cement and

JK Cement, Lafarge India, India Cements,
Madras Cements, Century Cements, Binani
Cement and Jaiprakash Associates.

Punishment

Competition Commission of India (CCI) has

slapped a penalty of over Rs 6,300 crore on 10
cement companies
The companies have been asked to deposit the
penalty within 90 days.

Case of Oil Companies

Competition Commission of India (CCI) is

looking into Public Sector Oil Companies, for
controlling the petrol prices even after prices in
international markets fell.
PSU oil firms, which generally revise the petrol
rates on 1st and 16th of every month have
skipped changing rates recently. The oil
companies have not reduced the petrol prices

citing the excuse that imports are getting

costlier due to the falling rupee.
Apart from this, CCI is also watching the Tyremanufacturing sector.