CCI rejects complaint against Hindustan Sanitaryware

Fair trade regulator CCI has rejected allegations of unfair business practices made against Hindustan Sanitaryware and Industries Ltd (HSIL) with regard to a dealership in Madhya Pradesh.
The complaint was filed by Shubham Sanitarywares -- a partnership firm engaged in the dealership business of sanitary ware, faucet ware and tiles of various brands in Indore. The entity's earlier complaint against HSIL was also rejected by the CCI.
The anti-trust regulator said the entity has not placed any new evidence to substantiate its allegations of violation of competition norms by HSIL.
"Moreover, the issues raised by the informant (Shubham Sanitarywares) in the instant case have already been considered by the Commission in its previous order in case no. 99 of 2013," the watchdog said in an order dated September 9.

Rejecting the allegations, the commission said there is "no prima facie case" of violation of competition norms.
For the latest case, Competition Commission of India (CCI) considered the market of branded ceramic sanitary wares and bathroom fittings in India as the relevant one.

According to Shubham Sanitarywares, HSIL stopped supply of products to it since February 2013. It was alleged that HSIL had sent communications to its dealers/distributors that discounts more than the limit stipulated by it should not be given to the customers.
"Until and unless regulation of discounts leads to appreciable adverse effect on competition, such practices do not become anti-competitive per se," the Commission said.

Among others, it was alleged that HSIL engaged in the practice of tie-in arrangement by asking its dealers to purchase products along with those sourced from other manufacturers.
"As far as the allegation of tie-in arrangement is concerned, the commission after considering the product range has found that complete set of bathroom fittings consist of ceramic and non-ceramic products are sold together as a set by companies dealing with branded products in organised industry of ceramics.
"Though individual units are also sold, consumers always have a choice to go for a complete set or different units from different manufacturers," the order said.