Competition Commission of India Probes Asian Paints for Market Dominance Abuse

The Competition Commission of India (CCI) has initiated an investigation into Asian Paints following allegations of market dominance abuse and anti-competitive practices. This decision comes after Grasim Industries lodged a complaint accusing the paint giant of hindering its entry and growth in the Indian market.

The CCI's directive cites a potential violation of Section 4 of the Competition Act, 2002, which prohibits the abuse of a dominant market position. The regulator's initial findings highlight practices by Asian Paints that may impose unfair conditions on dealers, such as enforcing exclusivity to restrict competition.

In response, Asian Paints argued that the decorative paints market remains competitive with many players. Despite Grasim's rapid market share growth, CCI maintains that evidence suggests Asian Paints could be obstructing market competition. The investigation, which will be impartial and not influenced by previous observations, is expected to conclude within 90 days.

(With inputs from agencies.)