UNDER SECTION 26(6) OF THE COMPETITION ACT

1. The present matter relates to suo-motu cognizance taken by the erstwhile Monopolies and Restrictive Trade Practices Commission (MRTPC) on the basis of an article published in the magazine 'The Outlook Business' dated 16^th - 19th April, 2008 alleging cartel like practices of leading Indian manufacturers of float glass. Consequent upon the repeal of the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act), the case was received on transfer by the Competition Commission of India (the Commission or CCI) under section 66(6) of the Competition Act, 2002 (the Act).

2. The facts of the case, in brief, are as under:

2.1 The article under reference published in the magazine "Outlook Business" brings out the competing claims of Indian float glass manufacturers and float glass importers. In the said article class manufactures have projected their concerns regarding cheaper imports from China and rising cost of inputs, which are allegedly eroding their competitiveness.

2.2 The said article also mentions that the float glass importers have alleged that the Indian Float Glass Industry is an oligopoly of three big manufacturers, namely Saint Gobain Glass India Ltd. (Saint Gobain), Asahi Glass Ltd. (Asahi Glass) and Gujarat Guardian Ltd. (Gujarat Guardian). The article also brings out that All India Glass manufacturing Association (AIFGMA), a representative body of the Glass Industry in India, is dominated by the these three float glass manufacturing companies.

2.3 It has also been alleged that the float glass manufacturers have been operating as a cartel since the mid 1990s and have been increasing prices and controlling supplies in the domestic market. Further their constant concerns over cheaper Chinese imports are just part of the strategies to ensure that imports do not impair their ability to control the domestic prices. The said article also brings out that the Commission for European Communities slapped a fine of Euro 486.9 million in November 2007 in case No.CQMP/39165 on these leading glass manufacturers besides Pilkington (UK) for coordinating price increase and other commercial conditions for deliveries of float glass in the European Economic Area.

2.4 The article further mentions that it has been alleged by the glass importers that in mid-nineties a series of spikes in float glass prices was due to the concerted action of the three glass manufactures which led to imports from China and Indonesia. The AIFGMA took the matter of the said imports of float glass from China and Indonesia to the erstwhile MRTPC. The matter went upto the Hon'ble Supreme Court wherein it was held that MRTPC could not stop the imports.

2.5 It has also been alleged at the behest of AIFGMA, Ministry of Commerce imposed anti-dumping duty in January 2003 for a period of five years on imports of select categories of 2 mm to 12 mm clear and tinted float glass from Indonesia and China. The Ministry of Commerce began its 'sunset review' in December 2007 as to whether to continue with the additional duties or not. According to the article, glass manufacturers were keen for continuation of the anti-dumping duties but also for widening its scope to cover other categories of glass.

2.6 The Article has also reported that according to 'Glass Yug', a leading magazine of Glass Industry, the prices of float glass increased from Rs.40/- per metre to Rs.50 per metre during the period between April to December, 2007 which was a result of the cartel like practices of leading Indian glass manufacturers.

3. DG (I&R), MRTPC and later on MRTPC, taking cognizance of the said article, initiated an inquiry in the matter. The inquiry instituted by DG(I&R) was challenged by All India Float Glass Manufacturers Association and Asahi India Glass by way of filing Writ Petitions in the Hon'ble High Court of Delhi. The Writ Petitions, however, were dismissed and the office of DG (I&R) continued with the proceedings. Replies were also recei