CCI rules in favour of NTN Corporation of Japan over cartelisation charges

Commission inquired into charges based on an application filed by NSK as leniency petitioner. Leniency rules protect those who come forward and submit information honestly

The Competition Commission of India (CCI) has dismissed the leniency petitions filed by two major Japanese bearings companies--NSK and JTEKT--against NTN Corporation Japan. NTN is a Japanese manufacturer of bearings.

NSK and JTEKT had alleged that they had entered into a cartel with NTN in Japan for supply of auto bearings to some car manufacturers in India.

The Commission has inquired into allegations of cartelisation on the basis of an application filed by NSK as leniency petitioner. Leniency regulations provide protection to those who come forward and submit information honestly.  

Based on the petition the Commission directed its director general (DG) to investigate the matter. During the pendency of investigation before the DG, JTEKT also approached the Commission as a leniency petitioner.

However, the Commission ruled in favour of NTN Corporation that it was able to demolish the evidence produced by NSK and JTEKT as well as the director general in its cross examination.

Experts said it is interesting to note that despite there being two leniency applicants out of an alleged cartel of three members, the CCI still found that the petitioners could not prove the case of cartelisation against NTN corporation.

Vaibhav Gaggar, a counsel for NTN, said the judgement should provide a lot of confidence to the  business community as they would now know that they can ably defend themselves and fairly try a matter before the CCI. "Also, the judgement should sound a warning to companies who target competitors through the antitrust machinery on flimsy grounds," he said.