CCI rejects complaint against glass maker Saint Gobain

Fair trade watchdog CCI has rejected allegations that leading glass maker Saint Gobain Glass India abused its dominant position, saying there is no evidence of the company violating competition norms.

 

Competition Commission of India (CCI), which keeps a tab on unfair trade practices, has considered the 'production and sales of clear float glass in India' as the relevant market for the case related to Saint Gobain Glass India.

 

The ruling has come on a complaint filed by HNG Float Glass Ltd against Saint Gobain Glass India Ltd. It was alleged that Saint Gobain indulged in anti-competitive practices and abused its dominant position in India's clear float glass market.

 

Among others, HNG had submitted to the Commission that Saint Gobain Glass India charged unreasonably low prices in the clear float glass segment.

 

"... The Commission is of opinion that no case of contravention of the provisions of section 4 of the Act is made out against the opposite party and concurs with the findings of the Director General in this regard," the order dated October 24, but released today, said.

 

The case was referred to the Director General (DG) -- the Commission's investigation arm in December 2011 -- and the final probe report was submitted in February this year.

 

The Commission, however, said it did not agree with the Director General's conclusion that Saint Gobain Glass India is in a dominant position.

 

According to the Commission's order, it does not appear that Saint Gobain Glass India has any economic strength or market power which can enable it to operate independently of competitive forces prevailing in the relevant market.

 

Meanwhile, the Commission has granted confidentiality period of 60 days for certain information on request from Saint Gobain Glass India.

 

"... The Commission is satisfied that no infirmity can be found or has been otherwise shown in the orders of the Direct General granting confidentiality for a limited duration.

 

"On a careful consideration of the averments made in the application, the Commission is of opinion that ends of justice would be met if the duration of the confidentiality period is extended by a further period of 60 days from the date of receipt of this order," the order said.

 

In a supplementary order, Commission member Geeta Gouri said that majority of members' move to analyse whether the entity abused its dominance despite being found that Saint Gobain is not dominant is "unwarranted".

 

"The exercise therefore of analysing abuse in the wake of the Commission concluding that the Opposite Party is not dominant is unwarranted and infructuous to the extent that Commission would not be able to take enforcement measures in the present case," Gouri said in the order.