CCI imposes penalty on paper producers


The Competition Commission of India (CCI) has issued a final order against certain paper manufacturers and on an association, which were found to have breached competition law provisions, said an official statement. 

CCI alleged that these entities contravened the provisions in law prohibiting anti-competitive agreements. 

The case was initiated by the Commission on the basis of certain material found during the ongoing investigations of two other cases. Although 21 original paper manufacturers and the association were investigated, contravention of law was found in the case of only ten producers and the association.  

The period of cartel was noted to be from September 2012 till March 2013, CCI said. 

CCI found these companies and an association which provided its platform, for such activities to have indulged in cartelisation in fixing the prices of writing and printing paper. 

“In this backdrop and further considering that during the pandemic, most businesses moved to the virtual mode thereby reducing the need for paper and affecting the paper business, CCI imposed a symbolic penalty of Rs. 5 lakh each on the ten (10) paper manufacturers found guilty of cartelisation,” said the statement. 

“Further, a penalty of Rs. 2.5 lakh was imposed on the association for providing its platform for anti-competitive activities. Apart from the above, CCI also directed the above paper manufacturers and the association, and their respective officials who have been held liable in terms of the provisions of Section 48 of the Act, to cease and desist in the future from indulging in anti-competitive conduct,” said the statement.


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