The Competition Commission of India has rejected a complaint that mineral
producer NMDC had abused its dominant position in the iron ore market.
CCI refused to order a direct inquiry, on a complaint from
the Sponge Iron Manufacturers Association, that NMDC was abusing its dominant
position in the market.
NO COLLUSION
The seven-member commission, headed by Chairperson Ashok
Chawla, held that NMDC was not in a “dominant†position in the market and the
production and sale of iron ore was anyway being affected by the Supreme Court
orders on illegal mining in Karnataka.
Rejecting the complaint, fair trade regulator Competition
Commission of India has said prima facie there is no collusion
between National Mineral Development Corp (NMDC) and other private parties
which led to anti-competitive issues.
The complaint was filed by Sponge Iron Manufacturers
Association against NMDC and four other entities, including Essel Mining and
Industries Ltd.
According to the complainant, NMDC’s anti-competitive
practices included discriminatory pricing between domestic and overseas buyers
and imposing unilateral one-sided conditions in the contracts.
In its submissions to the Commission, NMDC stated that the
Supreme Court had dealt with its pricing policy decisions and has categorically
passed an order stating that the fixation of basic price by it was transparent
and could not be interfered with.
SUPPLY BAN
“The Commission is not convinced that there existed a
deliberate reduction in production in view of the Supreme Court orders,†the
order said.
The Supreme Court had banned the supply of iron ore by NMDC
even to its long-term customers under the then existing long-term contracts.
Sourced
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