CCP raids fan makers, industry body over suspected price fixing
The enforcement action, conducted under Section 34 of the Competition Act, 2010, is part of an ongoing investigation into possible violations of Section 4 of the Act, which prohibits agreements or arrangements that restrict competition.
According to the CCP, three teams of authorised officers searched business premises and seized documents, pricing records, and digital evidence deemed relevant to the inquiry.
The Commission's Enquiry Committee reviewed three years of pricing data and obtained circulars issued by the industry association to its member companies. These circulars, it said, contained coordinated price hike announcements for various fan models.
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Price lists collected from multiple manufacturers revealed unusually similar pricing patterns, raising concerns of possible collusion.
In several instances, competing brands revised their prices on the same dates, while the price difference between standard ceiling fan models was as little as 0.05 percent. In some cases, rival companies were found charging and revising identical prices for specific fan variants.
'These practices raise serious concerns of collusive behaviour and a prima facie violation of Section 4,' the CCP noted.
The Commission emphasized that the electric fan industry plays a significant role in the national economy, and any attempts to artificially inflate prices or undermine competition will be addressed firmly.
CCP is mandated under the Competition Act to ensure free competition across sectors, enhance economic efficiency, and protect consumers from anti-competitive practices such as price fixing, collusion, and abuse of dominance.
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