2017-TIOLCORP-NEWS-016 | Monday, January 23, 2017

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COMPETITION LAWS
 
2017-TIOLCORP-03-CCI

Director, Supplies & Disposals And Shree Cement Ltd

Whether the bid prices quoted by cement companies in the tender unusually higher than the bid prices quoted in the previous tenders indicates collusive behaviour when such bid prices were not arrived at independently based on business consideration - YES: CCI

Whether consistent and uniform difference in the quoted price of bids by bidding companies is inconsistent with the conduct in a free and competitive market - YES: CCI

Whether it indicates collusive behaviour when none of the bidders have been able to provide a valid justification for reduction in the bid quantity in the tender year compared to tenders in the previous years - YES: CCI

Whether it is the requirement of law or any other jurisprudence that colluding bidders must submit bids containing identical or similar conditions - NO: CCI

Whether a uniform approach in first deciding the final quoted price and then doing reverse calculation to arrive at the basic price by deducting the various components of cost as well as statutory levies establishes the modus operandi adopted by the OPs in rigging the tender - YES: CCI

Whether the pattern, duration of calls made and SMSes sent during the tender period and the increase in their frequency closer to the last date of filing of the tender, can be used as strong circumstantial evidence to establish anti-competitive purpose - YES: CCI

Whether it indicates parallel behaviour among the bidders when the total quantity tendered by the cement companies almost matched with the total quantity which was sought to be procured - YES: CCI

Whether it is a strong evidence when those cement companies in previous tenders have quoted significantly higher quantity each time and in which, different quantity by a few, equaled the total quantity tendered - YES: CCI

Whether it is a mere coincidence when the cement companies have not been able to explain the methodology or the basis for quoting the final prices which were with an accuracy of two decimal points - NO: CCI

- Order u/s 27(1): COMPETITION COMMISSION OF INDIA
 

 

 

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