Asian Paints Faces CCI Heat Over Alleged Market Abuse—Vows Full Cooperation Amid Probe

Asian Paints Ltd is under the scanner of the Competition Commission of India (CCI) following a formal complaint by Grasim Industries’ Birla Opus Paints, alleging abuse of market dominance in the decorative paints segment. The CCI has issued a prima facie order directing a detailed investigation into the company’s conduct, citing potential violations of Section 4 of the Competition Act.

 

The allegations include coercive dealer practices, such as threatening to reduce credit limits, denying tinting machines, and offering exclusive incentives like foreign trips to restrict competition. Asian Paints is also accused of pressuring suppliers, landlords, and transporters to avoid dealings with Birla Opus, effectively creating barriers to market access.

 

In response, Asian Paints has stated it is reviewing the order and remains committed to cooperating fully with the investigation. The company emphasized its adherence to fair trade practices and plans to take appropriate legal recourse if necessary.

 

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Source: Fortune India – CCI Orders Probe Against Asian Paints | Financial Express – Birla Complaint Triggers CCI Action | Economic Times – CCI Investigation Timeline