India’s antitrust regulator, CCI has dissolved a complaint against Hindalco Industries and Vedanta charging for unfair business practices, especially to the copper products. However, the CCI has closed the case as the informant was not sufficient to prove the allegations made against the firms.

The informant alleged cartelization in deciding the prices of certain copper products in India by the firms. The sharing of the market of certain copper products by the process of allocation of customers and engagement in bid-rigging and collusive bidding.

Furthermore, the informant has also stated that Hindalco is the metal flagship company of Aditya Birla Group which is one of the leading suppliers of copper rods and other copper products in India. On the other hand, Vedanta is a globally renowned natural resources company that has a focus on iron ore, steel, copper and aluminum, power, and oil. The company along with the state-owned Hindustan Copper are the only three domestic producers that are involved in the manufacturing of refined copper.

According to informants, Hindalco and Vedanta monitor more than 85-90 percent of domestic demand and 75-80 percent of the domestic supply, respectively providing them a virtual stranglehold on supplies in the Indian market.

The CCI has stated that the mere price parallelism in itself is insufficient to condemn without any other material on record to substantiate collusion or concert between the entities. Despite the lack of evidence and non-revelation of names of the purported sources to the CCI. It further said that the commission is not inclined to claim an investigation based on such random allegation of the informants.

Moreover, the allegation inducing collusion between the OPs in deciding the rates of different copper products remain to be unsubstantiated, said the regulator.

The allegations suggesting collusion between the opposite parties (Hindalco and Vedanta) in determining prices of different copper products remain unsubstantiated, CCI said.

With respect to the allegation of bid-rigging, CCI noted that in the absence of any material showing even prima facie concert or specific averment as to collusion, it is neither feasible nor desirable to embark upon any roving probe in respect of the tenders.