CCI Probe Finds SKF, Schaeffler, Tata Steel Units Colluded on Bearings Prices

Release time：Nov 28, 2019 From：admin

Reuters reported that the Competition Commission of India antitrust probe has found that units of Tata Steel Ltd, Sweden's AB SKF and Germany's Schaeffler AG colluded on the pricing of bearings in Indian automobile market. CCI began an investigation in 2017 after receiving allegations of five companies colluding on bearings prices from 2009-2014. CCI's investigations arm analysed company emails, call records and executive testimonies and concluded that SKF India Ltd, Schaeffler India Ltd, National Engineering Industries and Tata Steel's bearings division contravened antitrust law by discussing and agreeing prices. The report also showed the investigations arm considered the collusion lasted through the financial year to March 2011 but found no evidence to indicate when it actually ended. As per report, the four firms, through personal meetings of key persons, on two occasions shared the strategic information regarding their future efforts to seek price increase from auto sector companies. It found no evidence against the fifth firm Timken Co’s ABC Bearings. The CCI can fine firms up to three times the profit made in each year of wrongdoing or 10% of revenue, whichever is higher.

The investigation report showed the four companies controlled nearly 75% of the domestic bearings market in the period 2009-11, a time when prices of steel were fluctuating sharply. There was consensus among the firms to seek price increase of 12% and settle at 6% with tractor and automotive manufacturers. With motorbike makers, there was a consensus to seek a 10% price increase and settle at 4%

In 2014, European Union antitrust regulators fined SKF, Schaeffler and three Japanese auto parts makers USD 1.3 billion for taking part in a bearings cartel from 2004 through 2011.