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CCI imposes Rs 17 cr fine on JTEKT Corp, its Indian arm, for cartelisation

The case was taken up by the watchdog after NSK approached it under lesser penalty regulations

Press Trust of India  |  New Delhi 

cci, competition commission of india
Representative image

The has imposed more than Rs 17 crore fine on Japan's JTEKT Corp and its Indian subsidiary for cartelisation with NSK Ltd in supply of electric power steering systems to automotive manufacturers.

The regulator decided not to impose any penalty on NSK and its Indian subsidiary as the company had submitted the evidence about the cartel.

The case was taken up by the watchdog after NSK approached it under lesser penalty regulations.

A detailed probe revealed that NSK and JTEKT as well as their Indian subsidiaries — RNSS and JSAI respectively -- indulged in cartelisation in the EPS systems market for at least six years (from 2005 to July 25, 2011).

Electric Power Steering (EPS) systems is a kind of device that help drivers to turn the wheels of vehicle with ease.

The entities indulged in unfair business practices by means of directly or indirectly determining price and allocating markets, among others, as per the (CCI).

The CCI's probe covered the period till July 25, 2011 since Japanese Fair Trade Commission had conducted an on-site inspection of four Japanese including NSK and JTEKT, in connection with alleged cartelisation in another product.

In its order dated August 9, the imposed a fine of Rs 17.07 crore on JTEKT and its Indian subsidiary JTEKT India Ltd (earlier known as JTEKT Sona Automotive India).

Besides, a total fine of Rs 31.34 lakh was imposed on JTEKT's seven officials.

The penalty on the company was reduced by 50 per cent under leniency provision as it was the second entity to approach the Commission after NSK.

First Published: Wed, August 14 2019. 12:00 IST