CCI ORDERS PROBE INTO MARKET ABUSE CHARGES AGAINST ASIAN PAINTS

 CCI ORDERS PROBE INTO MARKET ABUSE CHARGES AGAINST ASIAN PAINTS

CCI on 1st July 2025 ordered an investigation against Asian Paints for allegedly abusing its dominant position in the market for manufacturing and sale of decorative paints.

The direction follows a complaint filed by Grasim Industries (Birla Paints Division), which allegedly accused Asian Paints of engaging in exclusionary practices aimed at stifling its entry and growth in the Indian decorative paints market.

The Commission is of the opinion that a prima facie case of contravention of the provisions of section 4(2)(a)(i), 4(2)(c) and 4(2)(d) of the Competition Act by the OP (Asian Paints) is made out in the present matter.

DEALER INTIMIDATION STRATEGIES:

Suspected tactics include threatening reduced discounts and credit, increased targets, and removal of dealer incentives like foreign trips—unless they commit to stocking only Asian Paints products.

INPUT FORECLOSURE:

It is alleged that Asian Paints dispirited third parties—property-owners, C&F agents, carriers, raw material suppliers—from carrying business with Birla Opus.

MARKET SHARE:

Asian Paints is having around52% market share, while Birla Opusis having around 7%

It is said that Birla Opusis is trying to increase its market share through belligerent pricing and distribution tactics.

RESULT OF CCI’s PROBING

The CCI’s probing may result in the outcome which could result in penalties or behavioral directives if anti-competitive conduct is confirmed against Asian Paints.

R V SECKAR FCS,LLB 79047 19295