India’s antitrust body raided the offices of tyre companies including India’s CEAT, Apollo Tyres, and Germany’s Continental AG on Wednesday in an alleged case of competition law violations, four sources told Reuters.
The raids were carried out by officers of the Competition Commission of India (CCI) across multiple cities as reported by Reuters. The case is related to an antitrust investigation into the use of unfair trade practices and bid-rigging while supplying tyres for public transportation vehicles in the northern state of Haryana.
According to Reuters, the CCI was conducting an investigation in 2020 in response to a complaint from the Haryana state government. The CCI launched a broad investigation into many tyre companies in 2020 after receiving a complaint from the Haryana state government. At the time, the CCI stated that “there appears to be some arrangement or understanding amongst the tyre manufacturers.”
A bid-rigging conviction could result in a fine of up to three times the profit made in each year the prices were fixed by the companies, or 10% of annual revenue, whichever is greater.