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CCI dismisses market abuse charges against BPCL

18 Apr 2013 Evaluate

Finding no prima facie case for directing investigation arm, Director General, to probe the matter against BPCL, fair trade regulator, Competition Commission of India (CCI) has rejected complaints against company abusing its market dominance in transportation of LPG cylinders from bottling plants to distributors across the country.

Certain LPG cylinder transporters in Kerala and Tamil Nadu filed a complaint stating that BPCL abused its dominant market position by imposing unfair and discriminatory conditions for services and indulged in practices resulting in denial of market access to the complainants. Further, it had been alleged that the company reserved 50% of the routes for the distributors by entering into exclusive distribution pact with them.

However, CCI in its order dated April 10 ruled that BPCL  was not the dominant procurer of the services of trucks for transportation of goods as there were enough players for hiring such services in the country. Further, regarding allegations that BPCL introduced changes in the existing practice of delivery of LPG cylinders, CCI ruled that new model, which is partly based on open tender and partly based on agreement with its distributors, cannot be inferred to be anti-competitive or denial of market access.

BPCL Share Price

312.05 4.05 (1.31%)
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