Latest News | Competition Comm Penalises 3 Maritime Transport Cos for Cartelisation

New Delhi, Jan 24 (PTI) The Competition Commission has imposed fines totalling more than Rs 63 crore on three maritime transport companies and individuals concerned for indulging in cartelisation.

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The watchdog has passed an order against four companies for cartelisation with respect to provision of maritime motor vehicle transport services to automobile Original Equipment Manufacturers (OEMs) for various trade routes.

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Besides, the regulator has directed the four companies -- Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha Ltd, Mitsui O.S.K. Lines Ltd and Nissan Motor Car Carrier Company -- to cease and desist from anti-competitive practices, according to a release on Monday.

Following an application for lesser penalty, Competition Commission of India (CCI) decided to waive penalty on Nippon Yusen Kabushiki Kaisha (NYK Line).

The penalty imposed on Kawasaki Kisen Kaisha Ltd (K-Line) is Rs 24.23 crore while that on Mitsui O.S.K. Lines Ltd (MOL) and Nissan Motor Car Carrier Company (NMCC) is Rs 10.12 crore and Rs 28.69 crore, respectively.

NMCC and MOL had also filed applications before CCI for lesser penalties.

In the release, the CCI said the evaluation of available evidence revealed that there was an agreement between NYK Line, K-Line, MOL and NMCC with the objective of enforcement of 'Respect Rule', which implied avoiding competition with each other and protecting the business of incumbent carrier with the respective OEM.

"To achieve the said objective, the maritime transport companies resorted to multi-lateral as well as bilateral contacts/ meetings/ e-mails with each other to share commercially sensitive information which, inter alia, included freight rates.

"They also aimed to preserve their position in the market and maintain or increase prices, including by resisting requests for price reduction from certain OEMs," the release said.

Based on a cumulative assessment of the evidence, CCI found all the four companies guilty of contravention of the provisions of Section 3 of the Competition Act, 2002 that prohibits anti-competitive agreements, including cartels, from 2009 to 2012.

"Further, 14 individuals of NYK Line, 10 individuals of K-Line, 6 individuals of MOL and 3 individuals of NMCC, were also held liable for the anti-competitive conduct of their respective companies, in terms of the provisions of Section 48 of the Act," the release said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)