CCI directs probe into Asian Paints for abuse of dominance

New Delhi: The Competition Commission of India (CCI) on Tuesday directed an investigation into Asian Paints for the latter's alleged abuse of its dominant market position.

The regulator's move follows a complaint by Grasim Industries (Birla Paints Division) accusing Asian Paints of engaging in anti-competitive practices to stifle its growth in the decorative paints segment .

Grasim has alleged that Asian Paints is offering extra discounts and incentives to dealers in exchange for exclusive tie-ups and threatening them against stocking the informant's paints, among other things, thus abusing its dominant position.


For its part, Asian Paints has rejected the allegations.

"The commission is of the opinion that a prima facie case of contravention of the provisions of section 4(2)(a)(i), 4(2)(c) and 4(2)(d) of the Act by the OP (Asian Paints) is made out in the present matter," the CCI said in its order.

Section 4 of the competition law prohibits the abuse of dominant market position.