CCI rejects complaint against JSW Cement
The Competition Commission has dismissed allegations of abuse of dominance against JSW Cement in a matter related to denial of supply of cement. The complaint was made by Kerala-based Ramachandran V, an authorised dealer of JSW Cement.
It was alleged that JSW Cement had abused its dominant market position by denying the complainant supply of cement in breach of the dealership agreement entered between the two. For the case, the Competition Commission of India (CCI) considered the ‘market for manufacture and sale/ supply of cement in Kerala’ as the relevant one.
In an order dated February 28, CCI said as per the information available in the public domain, there are other established players in the relevant product market in Kerala. “Further, there do not seem to be any barriers to entry or expansion in the relevant market to constrain new entrant(s) or expansion by existing players,” CCI added.
Noting that JSW Cement “does not hold a dominant position in the relevant market”, CCI said, “In the absence of dominance, the question of abuse of dominant position by the Opposite Party (JSW Cement) does not arise.
“… the Commission is of the prima-facie opinion that no case of contravention of Section 4 of the (Competition) Act is made out against the Opposite Party,” CCI said. Section 4 pertains to abuse of dominant market position.