Fair trade regulator CCI on Thursday dismissed a complaint against Hindalco Industries Ltd and Vedanta Ltd alleging unfair business practices with respect to copper products.
The Competition Commission of India (CCI) closed the matter as the informant was not able to substantiate the allegations made against the firms. The informant alleged cartelisation in determining prices of certain copper products in India by the firms, sharing of market of certain copper products by way of allocation of customers and engagement in bid rigging and collusive bidding.
The informant stated that Hindalco is the metals flagship company of Aditya Birla Group and is the leading supplier of copper rods and other copper products in India, while Vedanta is a globally diversified and natural resources company with interests in iron ore, steel, copper, aluminium, power and oil.
The firms along with state-owned Hindustan Copper Ltd are the only three domestic producers in India, engaged in the production of refined copper, it added.
As per the informant, Hindalco and Vedanta control around 85-90 per cent of domestic demand and 75-80 per cent of the domestic supply, respectively, giving them a virtual stranglehold on supplies in the Indian market.
The regulator said mere price parallelism in itself is not sufficient to order probe in the absence of any other material on record to substantiate collusion or concert between the entities.