CASE LAW

CEMENT CARTEL
• 1) Huge penalty was imposed upon 11 cement companies vide
CCI order dated 20/6/12 and the present case bearing number
52/2006 of Shree Cement Ltd. Was decided vide CCI order
dated 30/7/12
• 2) Facts of the earlier 11 cases and the present case of Shree
Cement are the same
• 3) Above 12 cement companies formed cartel and reduced
production of cement in order to increase the prices
• 4) DG enquiry was ordered in respect of Shree cement by CCI
under sec26(1)
• 5) DG found that 70% market was held by above 12 cement
companies and the price which was Rs 150 per bag rose to
Rs.300 per bag during 2010-2011
• 6) Although cartelisation started prior to 20/5/2009 ( when
Act was enacted), the practice continued even after
20/5/2009 and hence CCI had jurisdiction
• 7) CCI held that there is no abuse of dominance under sec4
since no single company is in a position to operate
independently of Competetive forces in the relevant market
but there is a horizontal cartelisation under sec 3(3). CCI also
held that there is a collusive behaviour to reduce supply and
increase price
• 8 ) Shree cement was asked to pay of Rs. 397.51 crores
• 9) The above cartel was operated through cement
manufacturers association by holding frequent meetings of
the cement manufacturers