The raids were carried out by CCI officers in several cities, the sources said
The raids were carried out by CCI officers in several cities, the sources said
India’s antitrust agency on Wednesday raided offices of tire makers including Germany’s Continental AG and India’s Apollo Tires and CEAT in a case of alleged competition law violations, four sources told Reuters.
Shares in Apollo, one of India’s largest tire makers, fell as much as 3% after Reuters first reported the raids, while CEAT fell 2.2% in the Mumbai market, which was trading higher.
Shares of Continental, a relatively small player in India, fell about 3.5% in morning trade in Frankfurt.
Apollo did not immediately respond to a request for comment, while calls and messages to CEAT spokesmen went unanswered.
In a statement following the publication of the Reuters report, Continental confirmed that officials from the Competition Commission of India (CCI) had visited its office near New Delhi.
“Continental is fully cooperating with the authorities,” it said.
The raids were carried out by CCI officers in several cities, the sources said.
The CCI did not immediately respond to a request for comment. The agency does not publicly disclose its raids.
According to one of the sources, the case was related to an antitrust investigation into the use of unfair trading practices and bid manipulation in the supply of tires for public transport vehicles in the northern state of Haryana.
Reuters reported in 2020 that the CCI conducted a wide-ranging investigation, covering many tire companies, after receiving a complaint from the Haryana state government. The IHK said at the time: “There seems to be a certain agreement or understanding between the tire manufacturers”.
Finding bid rigging can result in a fine of up to three times the profits for each year prices have been fixed by the companies, or up to 10% of annual sales, whichever is greater.
