Competition Commission of India(CCI) imposes a penalty on maritime transport companies for indulging in cartelisation // Some Information about CCI and cartelisation // 2022 Current Affairs //

Competition Commission of India(CCI) imposes a penalty on maritime transport companies for indulging in cartelisation:

The Competition Commission of India i.e CCI fined four maritime transport companies namely Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines Ltd.9 and Nissan Motor Car Carrier Company for indulging in cartelisation in the provision of maritime motor vehicle transport services to automobile Original Equipment Manufacturers (OEMs). 

On the probe done by CCI, it came to light that there was an agreement between these four companies with the objective of enforcement of “Respect Rule”, which call for avoiding competition with each other and protecting the business of incumbent carrier with the respective OEM. It also found regular sharing of freight rates was also done between these companies. And by all these, they at large wanted to preserve their position in the market and maintain increased prices, by resisting requests for price reduction from certain OEMs. 

After finding all this evidence of maintaining market hegemony through competition elimination by unfair means CCI decided to Impose penalties under the Competition Act,2002.

What is Cartelisation?

Cartelisation means the act of forming a Cartel. A cartel is a group or entity of businessmen to regulate the production, supply and pricing of goods.

SPECIAL NOTES FOR ASPIRANTS:

• Competition Commission of India(CCI) founded in 2003

• Chairman of CCI- Ashok Kumar Gupta

• CCI is the main agency to implement Competition Act,2002

• CCI comes under the Ministry of Corporate Affairs

• Competition Act,2002 replaced and come in place of Monopolies and Restrictive Trade Practices Act, 1969