Competition Monthly May 2026

CCI ORDERS DG INVESTIGATION INTO ALLEGED ABUSE OF DOMINANCE BY VENKATESHWARA HATCHERIES GROUP

The Competition Commission of India (CCI), by its order dated 01 April 2026, directed the Director General (DG) to investigate allegations of abuse of dominance and anti-competitive vertical restraints against the Venkateshwara Hatcheries Group (VH Group).

The case arose from information filed by People for Animals (PFA), alleging that the VH Group imposed restrictive conditions through its Broiler Breeder Agreements (BBA) and Layer Breeder Agreements (LBA), including prohibitions on contract breeders from dealing with competing breeds and restrictions on sale of chicks and hatching eggs to third parties, thereby limiting market access.

The CCI delineated the relevant markets as (i) production and supply of parent stock of commercially viable layer hen breeds, and (ii) production and supply of grandparent/parent stock of commercially viable broiler chicken breeds in India. The CCI observed that the VH Group operates as a large integrated player with significant presence across the value chain and influence in industry bodies.

On aprima facie assessment, the CCI noted that the BBA and LBA are standard form agreements that restrict breeders from procuring alternative breeds and limit sales to “unauthorised persons”. Such clauses were found to potentially amount to exclusive supply and distribution arrangements under Section 3(4) of the Competition Act, 2002 (Act), capable of foreclosing competition. The CCI further observed that these restrictions may result in appreciable adverse effect on competition (AAEC) by limiting breeders’ ability to access alternative inputs, restricting their participation in downstream markets, and foreclosing competing suppliers. Such conduct may also reduce competitive pressure, restrict output channels, and potentially lead to higher prices and reduced consumer choice. Accordingly, the CCI held that a prima facie case exists and directed the DG to conduct a detailed investigation.

CCI REJECTS INTERIM RELIEF IN ALLEGED BID-RIGGING CASE AGAINST JUPITER RUBBER AND JUPITER COATERS

The CCI, by its order dated 01 April 2026, denied interim relief under Section 33 of the Act, in a case alleging bid-rigging and collusive conduct by M/s Jupiter Rubber Pvt. Ltd. and M/s Jupiter Coaters Pvt. Ltd.

The case arose from information filed by M/s Universal Yarns & Tex Pvt. Ltd., alleging that the opposite parties, having common management and shareholding, engaged in collusive bidding in tenders floated by the Ordnance Equipment Factory (OEF), Kanpur. It was alleged that the opposite parties submitted identical bids and supplied goods at inflated prices, in contravention of Section 3 of the Act.

The CCI had earlier directed the DG to investigate the matter. Pending investigation, the Informant sought interim relief to restrain the opposite parties from participating in ongoing and future tenders.

The CCI, relying on the principles laid down by the Supreme Court in CCI v. SAIL, observed that interim relief under Section 33 is to be granted sparingly and only in compelling circumstances. Upon assessment, the CCI held that the Informant had failed to establish a strong prima facie case or demonstrate any irreparable harm that would justify such a restrictive direction. The CCI also noted that restraining the opposite parties at this stage could adversely impact competition and the tendering process.

Accordingly, the CCI rejected the prayer for interim relief, while clarifying that the observations made would not prejudice the ongoing investigation.

CCI FINDS BID-RIGGING CARTEL IN ASSAM POLICE HOUSING CORPORATION TENDERS

The CCI, by its order dated 07 April 2026, held multiple electrical contractors guilty of bid rigging in tenders floated by the Assam Police Housing Corporation Limited (APHCL) for electrification works under the Mission of Overall Improvement of Thana for Responsive Image (MOITRI) Scheme.

The matter arose from a complaint filed by the Office of the Accountant General (Audit), Assam, which flagged irregularities in the tendering process for electrification works undertaken in 73 police stations.

The DG’s investigation revealed extensive evidence of cartelisation, including bid rotation and allocation of tenders among bidders. The CCI noted several corroborative indicators of collusion, such as identical pricing patterns across bidders, replication of errors in tender estimates, and bids quoting values mirroring the consultant’s estimates. Further, bids were submitted from common IP addresses and the same cyber-café within short intervals, and demand drafts used for tender participation were sequentially numbered and often procured by a single entity. Statements on record also indicated that bids were uploaded through a common intermediary on behalf of multiple bidders.

The CCI observed that such conduct evidenced a clear “meeting of minds” among the bidders, resulting in coordinated bidding behaviour, including cover bidding and bid rotation, thereby distorting the competitive process. The consistent pattern of participation and distribution of winning bids further reinforced the existence of a cartel.

Accordingly, the CCI held opposite parties to be in contravention of Section 3(3)(d) of the Act. The CCI directed the parties to cease and desist from such conduct. However, the CCI did not impose any monetary penalty.

CCI APPROVES TATA STEEL’S ACQUISITION OF MAJORITY STAKE IN THRIVENI PELLETS

The CCI, by its order, approved the proposed acquisition by Tata Steel Limited (Tata Steel / Acquirer) of 50.01% equity share capital in Thriveni Pellets Private Limited (TPPL / Target).

The proposed combination involves Acquirer, an integrated steel manufacturer engaged across the value chain from mining to steel production, acquiring a controlling stake in TPPL, a company engaged in the production and sale of iron ore pellets, along with its subsidiary Brahmani River Pellets Limited (BRPL).

The CCI examined horizontal overlaps between the parties in the manufacture and/or sale of iron ore pellets in India (Iron Ore Pellets Market). The overlap was found to be notional, as Tata Steel primarily produces iron ore pellets for captive consumption and is not engaged in sale of iron ore pellets to third parties.
The CCI also examined vertical linkages arising from the proposed transaction, including: (i) upstream market for mining of iron ore in India and downstream Iron Ore Pellets Market; (ii) upstream Iron Ore Pellets Market and downstream market for production and/or sale of Sponge Iron in India (Sponge Iron Market); and (iii) upstream Iron Ore Pellets Market and downstream market for production and / or sale of semi-finished steel products/crude steel in India (Semi-finished Steel Market). The CCI noted that the assessment was more relevant in the vertical context, particularly in relation to potential foreclosure of non-integrated steel manufacturers.

The CCI noted the presence of TPPL in the third-party Iron Ore Pellets Market and observed that market share of TPPL entities is in the range of [5-10]% and the third-party sale segment is led by Rashmi Metaliks Limited and Rungta Mines Limited with market shares in the range of [15-20]% and [10-15]% respectively. Further, the market share of the Acquirer in the upstream Iron Ore Market based on overall sales value is [15-20]% and [0-5]% based on third party/merchant sales volume and the market shares of the Parties in the downstream Sponge Iron Market and Semi-Finished Steel Market based on overall sales value is [0-5]% and [10-15]% respectively.

Considering the presence of multiple established players across the relevant markets and the limited market shares of the parties, the CCI concluded that the proposed combination is unlikely to result in any foreclosure concerns or AAEC. Accordingly, CCI approved the proposed combination.

CCI APPROVES TOYOTA GROUP’S INTERNAL RESTRUCTURING INVOLVING TOYOTA INDUSTRIES CORPORATION

The CCI, by its order, approved the proposed acquisition by Toyota Asset Preparatory Co., Ltd. (Acquirer) of 100% shareholding in Toyota Industries Corporation (Target). The proposed combination forms part of an internal restructuring within the Toyota Motor Corporation (TMC) group and involves the acquisition of the Target through a series of transactions, including a tender offer, buy-back and potential squeeze-out, with the objective of taking the Target private and consolidating it within the group structure.

For the purpose of competition assessment, the CCI noted that there were no horizontal overlaps between the activities of the parties. However, certain vertical linkages were identified, including: (i) the upstream market for the manufacture and sale of engines for passenger vehicles in India (Engines Market) and downstream market for the manufacture and sale of passenger vehicles in India (Passenger Vehicles Market); and (ii) the upstream market for manufacture and sale of manual transmission parts for manual transmission systems for passenger vehicles in India (Transmission Parts Market) and downstream market for manufacture and sale of manual transmission systems for passenger vehicles in India (Transmission Systems Market).

The CCI observed that the market shares of the parties across these vertically related markets were limited, generally in the range of [0–5]% and [5–10]%, and noted the presence of several established competitors. Further, the transaction, being an internal restructuring, was not likely to alter the competitive landscape or affect market dynamics.