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India's Tyre Industry

The Tyre Cartel Case

How the Competition Commission of India fined major tyre companies in 2018 for colluding on prices, and the legal battle that followed.

Tyre makers were accused of forming a cartel.

The case

In 2018, the Competition Commission of India (CCI) found that MRF, Apollo, CEAT, JK Tyre and Birla Tyres colluded to fix prices of car tyres around 2011-12.

Penalty

CCI fined them about ₹1,788 crore in total.

Evidence

The tyre makers’ association allegedly shared price and production data.

Companies challenged the order; appeals went through tribunals and courts.

Economics

Cartels raise prices and harm consumers; competition law aims to stop them.

The data sharing

Competitors sharing detailed price data through an association can help them coordinate prices.

Thinking big firms can't collude

CCI found tyre firms colluded.

Key takeaways
  • CCI fined tyre makers in 2018.
  • The fine was about ₹1,788 crore.
  • Data sharing allegedly aided collusion.
  • Cartels raise prices.
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