In Re. : Federation of Corrugated Box Manufacturers of India v. Gujarat Paper Mills Association and Others
Case brief
What is this about?
The Competition Commission of India examined allegations against numerous paper mills and associations for forming cartels to fix Kraft paper prices and coordinate factory shutdowns. The Commission found that participation in association meetings, receipt of price-fixing circulars, and implementation of collective shutdowns via WhatsApp groups constituted a violation of Section 3 of the Competition Act, 2002. Noting that the respondents were largely MSMEs and first-time offenders facing economic stress due to the pandemic, the Commission opted to refrain from imposing monetary penalties, instead directing the parties to cease and desist from such practices.
What did the court decide?
The Commission directed OP-1 to OP-119 to cease and desist from indulging in any practice contrary to Section 3 of the Competition Act, 2002, but refrained from imposing any monetary penalty considering the MSME status and economic stress of the parties.