Regulator Probes Asian Paints for Anti-Competitive Practices

The Competition Commission of India has ordered an investigation into Asian Paints for allegedly abusing its dominant position in the decorative paints market. The probe follows a complaint from Grasim Industries, which accused Asian Paints of exclusionary practices aimed at obstructing its market entry.

The Competition Commission of India (CCI) has initiated an investigation into Asian Paints over allegations of abusing its dominant market position. The move comes after Grasim Industries, operating under the Birla Paints Division, filed a complaint citing anti-competitive practices by Asian Paints.

According to the CCI, Asian Paints may have contravened several provisions of the Competition Act, 2002, including those prohibiting abuse of dominant position. The regulator's order highlights potential exclusionary tactics imposed by Asian Paints on dealers and suppliers, placing unfair conditions and creating market entry barriers.

The investigation, directed by the CCI to be completed within 90 days, will examine whether these practices lead to reduced competition in India's decorative paints market. Grasim Industries had launched its 'Birla Opus Paints' brand last year and claims to have faced obstacles from Asian Paints aimed at stifling its growth.

(With inputs from agencies.)