Indian Court Upholds Antitrust Inquiry Against Asian Paints
An Indian court dismissed Asian Paints' plea to halt an antitrust investigation by the Competition Commission of India. The investigation was initiated after competitor Birla Opus alleged that Asian Paints abused its market dominance. Rapid real estate growth in India has intensified competition in the lucrative paints sector.
In a significant development, an Indian court on Thursday dismissed a plea by Asian Paints seeking to stop an ongoing antitrust inquiry against the company. The Competition Commission of India (CCI) is actively investigating the actions of Asian Paints following a complaint by rival company Birla Opus.
The court in Mumbai found no merit in the plea submitted by Asian Paints, which aimed to dismantle the CCI's investigation. The High Court's decision came after allegations surfaced that Asian Paints used its dominant market position to impose unfair discounts and dealer incentives, as reported by informed sources.
The investigation highlights the burgeoning competition within India's rapidly growing paints sector, estimated to be worth $9.5 billion, fueled by the nation's infrastructure boom. While Asian Paints retains a 52% market share, Birla Opus has quickly gained a foothold since its market entry last year.
(With inputs from agencies.)
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