A Study On The Impact Of Cartelization In The Indian Cement Industry With Reference To Cement Cartel Cases
Afiya Parveen A, B.Com. LL.B. (Hons), The Tamil Nadu Dr. Ambedkar Law University (School of Excellence in Law), Chennai, India
ABSTRACT
The Competitive market faces a serious threat via cartelisation which reduces competition as it allows the competing companies and industries to work together instead of competing with each other. The Indian Cement industry has faced severe downfall due to several allegations and cases relating to cartelisation which takes effect via price fixing, restriction of supply and bid rigging. This study firstly, examines the concept of cartelization and its legal perspective. Secondly, examines and compare the Indian legal framework on anti-competitive agreements with the regulatory approach adopted by the European Union. Thirdly, analyze the impact of cartelization on the Indian cement industry and how such practices affect the consumers and the economy through higher prices, limited choices, reduced competition and stagnation for innovation. The study uses doctrinal research method and relies on legislation, Judgements, Competition Commission of India orders, reports and other secondary sources. The study finds that although the existing legal framework provides measures to deal with cartelisation, stronger enforcement, higher penalties, better protection for whistleblowers and greater cooperation between competition authorities across borders are needed to control cartel practices effectively.
Keywords: Cartelisation, Indian Cement Industry, Anti-Competitive Agreements and Competition Commission of India.
