CCI Rejects Dominance Abuse Charge Against Timken India

Competition Commission has dismissed allegation that bearings-maker Timken India abused its dominant position by not allowing its authorised distributor to participate in the tenders floated by ONGC. After finding that the company has less than 10 per cent market share in the overall bearings market, the regulator said Timken India “does not enjoy dominant position in the relevant market”. As per the complaint filed by Shah Associates (dealer), it was not allowed to participate in the tenders floated by ONGC and the firm also quoted higher prices for the ONGC tenders in collaboration with the competitors of the informant.

For this case, Competition Commission of India (CCI) considered “market for industrial bearings in India,” as the relevant market. Citing CMIE industrial outlook data, the watchdog noted that there are several players in the market for industrial bearings in India and the firm enjoys less than 10 per cent market share. “Considering these factors, the Opposite Party (Timken) does not appear to enjoy a position of the strength required to operate independently of the market forces,” CCI said in a recent order. Rejecting the complaint, the watchdog said “in the absence of the opposite party enjoying dominant position in the relevant market, the question of abuse does not arise”.