India's Antitrust Authority Rules Against Cement Industry Cartel 17 Years Ago

The Monopolies and Restrictive Practices Commission of India (MRTPC) recently concluded a 17-year investigation and ruled that 44 cement producers conspired to manipulate cement prices between February and April 1990 with the support of the Cement Manufacturers Association (CMA), constituting a cartel. A three-member panel, including Judge Dwivedi, has issued an injunction ordering companies to stop engaging in cartels directly or through the CMA and to submit an "enforcement report" within eight weeks. & nbsp; The MRTPC said that "direct and indirect evidence of collusion has been found in this case.". The first defendant, CMA, assesses the price situation from time to time and is a strong signal of the existence of a cartel. "The CMA has been fixing prices through a control regime.". In this context, the defendants continue to raise prices synchronously, indicating the existence of conspiracy. & nbsp; Government of India welcomes MRTPC's decision. The Minister of Commerce and Industry, Nath, said the government was concerned that the cartel violated the interests of consumers. Earlier, the central government of India had warned cement manufacturers not to artificially raise the price of building materials, asked the cement industry to increase production, and announced that the import tariff of cement would be reduced to zero to increase imports. & nbsp; CMA President Bangur said that the Association respects the ruling of the MRTPC and will decide how the Association will work after carefully studying the prohibition order. & nbsp; However, analysts believe that the ban will not have much impact on the cement industry. On the one hand, MRTPC has limited power to take any other measures against cartels other than issuing an injunction; on the other hand, this case is an old case 17 years ago and has nothing to do with the rise in cement prices caused by the rise in raw material prices in recent years, not to mention that nearly ten enterprises involved have closed down or been merged.

Cartel is one of the forms of monopoly organization. An alliance formed by enterprises that produce or sell a commodity of the same kind in order to monopolize the market and obtain high profits by concluding agreements on commodity prices, production and sales. Those who participate in this alliance remain independent in production, commerce and law.

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