The commission directs the Director General (DG) to cause an investigation to be made into the matter and submit an investigation report within a period of 90 days
After Birla Opus, the Paints venture of Aditya Birla Group, filed a complaint accusing Asian Paints of abuse of dominant position, the Competition Commission of India (CCI) has ordered a formal investigation against Asian Paints.
CCI, in a 16-page order, said that 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 Asian Paints is made out in the present matter. Asian Paints, by way of restraining its dealers from dealing with the 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.
“The commission, in terms of the provisions contained in Section 26(1) of the Act, directs the Director General (DG) to cause an investigation to be made into the matter and submit an investigation report within a period of 90 days of the receipt of the present order. At this prima facie stage, the Commission, in light of the material available on record, finds no reason to hear the OP (Asian Paints) before passing the present order,” the order read.
The commission also stated that by restraining suppliers of essential raw materials from providing goods and services to the its competitors, as well as by coercing landlords, C&F agents and transporters to refrain from engaging with competitors, Asian Paints seems to be prima facie creating barriers to new entrants in the market as well as partially foreclosing competition in the market. Thus, the afore-detailed conduct of Asian Paints (OP) seems to be prima facie causing an appreciable adverse effect on competition in India.
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 OP, the complainant has invested heavily in manufacturing and distribution, and recruited talent from across the industry, including from the OP.
Asian Paints also added that, as per an equity research report by Jefferies (May 2025), the complainant has established a network of approximately 50,000 dealers and an equal number of colour tinting machines, surpassing the reach of many long-established players.
