UPDATE 1-India rules Tata Steel, SKF, Schaeffler units colluded on bearings prices

  • Reuters
  • Stock Market News
UPDATE 1-India rules Tata Steel, SKF, Schaeffler units colluded on bearings prices
Credit: © Reuters.

(Adds comment from Tata)

By Aditya Kalra

NEW DELHI, June 5 (Reuters) - India's antitrust body has ruled that units of Sweden's AB SKF SKFb.ST , Germany's Schaeffler AG SHA_p.DE and Tata Steel Ltd TISC.NS , along with local firm National Engineering Industries, are guilty of colluding and fixing prices of vehicle ball bearings.

The Competition Commission of India (CCI) began a probe into the matter in 2017 after receiving information that the entities had been colluding on bearings prices from 2009-2014, to pass on higher raw material costs to customers in the auto sector.

In a 36-page order issued on Friday, the CCI said it "holds NEI, Schaeffler, SKF and Tata Bearing guilty" of contravening the country's antitrust laws.

However, it added that it had decided not to impose a penalty, saying the "ends of justice would be met if the parties cease such cartel behaviour and desist from indulging in it."

The CCI order showed the case was initiated after Schaeffler in 2017 filed a so-called leniency application, in which companies seek lesser penalties and make disclosures about their activities.

Later, National Engineering Industries also filed a similar plea under the leniency programme, the CCI order said.

Tata Steel said in a statement that its divisions had strong governance practices regarding anti-competitive conduct and the company was "extremely mindful of compliance to the regulatory norms". SKF, Schaeffler and National Engineering Industries did not respond to a request for comment.

Reuters reported last year that CCI's investigations arm concluded that SKF India SKFB.NS , Schaeffler India SCHE.NS , Tata Steel's bearings unit and National Engineering Industries had contravened antitrust law by discussing and agreeing prices.

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  • Srinivasulu Kasaram @Srinivasulu Kasaram
    do not comment about tata's without knowing anything. they are the one of the most ethical entities in the world.
    Like 1
  • Sunnil Bhase @Sunnil Bhase
    Astonished to see name of TATA in this matter. This is highly unethical practice.
    Like 0
  • Vipin Anand @Vipin Anand
    The penalty should have being their. This should be any example for other companies that these practices are not acceptable at all.
    Like 1
  • Rajeswari allu @Rajeswari allu
    no penalty so no impact
    Like 0
    will it impact tata Steel share price
    Like 0
  • Sanjay Sharma @Sanjay Sharma
    will it impact tata Steel share price
    Like 0

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