Indian tire manufacturers accused of conspiracy

Indian anti-monopoly authorities have launched an investigation into local tire manufacturer JK Tire & Industries after the Haryana state government accused it of bid rigging. Then the investigation was extended to other companies, according to Reuters.

The Competition Commission of India (CCI) launched an investigation into JK Tire last year after the Haryana state government announced the company was using unfair trade practices in a public transport tire tender. The state said JK Tire was the only bidder and offered high prices - about 34% higher than previous purchases. The Compliance Service then ordered an investigation, saying that the non-bidding of other tire manufacturers "suggests a concerted effort to falsify the bid."

In August this year, CCI decided to examine the role of other tire manufacturers and expanded its audit to include Apollo Tyres, CEAT and MRF, as well as the Indian subsidiaries of French Michelin and Germany's Continental AG.

The discovery of bid rigging can lead to significant fines for all parties to the collusion.

As part of the investigation, CCI requested access to e-mails of some JK Tire executives for five years, saying it was necessary for the investigation.

JK Tire challenged this claim in the Haryana High Court, arguing that she was cooperating with the investigation and the executives' emails had nothing to do with the case. On September 19, 2020, the company said that the investigating group acted in "completely unreasonable, arbitrary and bizarre ways."

The next hearing will take place on October 28.