The Competition Commission of India (“CCI”) passed the final order against four maritime transport companies namely Nippon Yusen Kabushiki Kaisha (“NYK Line”), Kawasaki Kisen Kaisha Ltd. (“K-Line”), Mitsui O.S.K. Lines Ltd. (“MOL”) and Nissan Motor Car Carrier Company (“NMCC”). Among these, NYK Line, MOL and NMCC were lesser penalty applicants.
After a detailed probe, the CCI found the companies guilty of indulging in cartelisation in the provision of maritime motor vehicle transport services to automobile original equipment manufacturers (“OEMs”) for various trade routes. The CCI, in its findings, observed that there was an agreement between NYK Line, K-Line, MOL and NMCC with an objective to enforce
the ‘respect rule’ which meant avoiding competition with each other and protecting the business of other carriers with their respective OEMs.
The CCI further observed that in order to achieve the respect rule, the companies used to share commercial sensitive information including freight rates with each other. The companies used to resist price reduction from certain OEMs to preserve their market position and maintained their prices.
In the backdrop of the evidence and findings at hand, the CCI held that the companies were guilty of forming a cartel between 2009 to 2012 and accordingly passed a cease and desist order. The CCI also imposed penalties on K-Line, MOL & NMCC to the tune of approximately INR 242,000,000, (Indian Rupees Two Hundred and Forty Two Million), INR 101,000,000 (Indian Rupees One Hundred and One Million), and INR 286,000,000 (Indian Rupees Two Hundred and Eighty Six Million), respectively
Please click here to read the CCI order.
