Asian Paints states that the company remains committed to fully cooperating with the Competition Commission of India (CCI) during the investigation
After the Competition Commission of India (CCI) ordered a formal investigation against Asian Paints regarding allegations of abuse of dominance, the company has stated that it is reviewing the order and will take ‘appropriate legal recourse’.
“The company is currently reviewing the order and will take appropriate legal recourse. The company remains committed to fully cooperating with the CCI during the course of the investigation,” Asian Paints said in a regulatory filing.
Earlier this week, CCI ordered an investigation against Asian Paints for allegedly abusing its dominant position in the market for manufacturing and sales of decorative paint. The complaint was filed by Aditya Birla group’s Grasim Industries.
CCI, in a 16-page order, said that commission believes 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 Asian Paints is made out in the present matter. Asian Paints, by way of restraining its dealers from dealing with its competitors by enforcing exclusivity upon such dealers, is imposing unfair conditions upon them, which is found to be in the nature of exploitative conduct, CCI said.
However, the CCI stated that nothing stated in the present order shall tantamount to final expression of opinion on the merits of the case. In its preliminary response, Asian Paints stated that no other paint company has been able to scale up in the manner that the complainant has, since its entry in March 2024. As per the opposing party, the complainant has invested heavily in manufacturing and distribution, and recruited talent from across the industry, including from the opposing party.
