The Competition Commission of India (CCI) has shut the case against Lakshmi Machine Works (LMW) as Shahi Exports had approached the Commission alleging that LMW had abused its dominant position in sale of spinning machinery for textiles. Shahi Exports had pointed that LMW had unilaterally increased prices and imposed unfair terms and conditions in a contract the two parties had signed, given its dominant position in the market.
CCI has examined the information and found that, despite LMW being a dominant player; it had not contravened the provisions of Section 4 Competition Act (abuse of dominance). Meanwhile, Lakshmi Machine Works had submitted that the price increase was due to increase in costs of raw material and labor.
