{"id":225874,"date":"2020-02-18T16:38:04","date_gmt":"2020-02-18T11:08:04","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=225874"},"modified":"2020-02-25T17:55:17","modified_gmt":"2020-02-25T12:25:17","slug":"cci-asian-paints-threatened-dealers-to-discontinue-their-supplies-with-alleged-intent-to-hinder-entry-of-jsw-paints","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/18\/cci-asian-paints-threatened-dealers-to-discontinue-their-supplies-with-alleged-intent-to-hinder-entry-of-jsw-paints\/","title":{"rendered":"CCI |&#8221;Asian Paints&#8221; threatened dealers to discontinue their supplies with alleged intent to hinder entry of &#8220;JSW Paints &#8220;"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Competition Commission of India (CCI): <\/strong>The Bench of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi, Members, while dealing with a complaint filed by JSW Paints against Asian Paints, held that,<\/p>\n<p style=\"text-align: justify;\">\u201cA stipulation that appears to create barriers to entry and restricts choice of consumers is likely to result in an appreciable adverse effect on competition resulting in higher prices for consumers.\u201d<\/p>\n<p style=\"text-align: justify;\">In the present case, JSW paints after building up its business after 3 years had launched its decorative paints in May 2019 and after the launch of the same, Asian Paints began pressurizing dealers who had agreed to stock and display decorative paints manufactured by them. Such conduct created fear amongst the retailers\/dealers, as a result of which a number of them stopped dealing with JSW Paints, despite having provided the initial cheque of Rs 1 lakh as an advance against the launch orders of JSW Paints.<\/p>\n<p style=\"text-align: justify;\">Several dealers were compelled to remove all signage and promotional material from conspicuous locations in their premises to the backside of the premises or their godowns. For the fear of losing dealership of Asian Paints, certain dealers decided to discontinue purchase of JSW Paint\u2019s products.<\/p>\n<p style=\"text-align: justify;\">Asian Paints allegedly pressurised enterprises that provided infrastructure facilities like warehouses to JSW Paints to not keep products of JSW Paints.<\/p>\n<p style=\"text-align: justify;\">It was also stated that earlier on an occasion Asian Paints had taken punitive action against a dealer on account of its decision to stock and sell paints manufactured by Nippon Paint India Private Limited.<\/p>\n<p style=\"text-align: justify;\">By virtue of its dominance, Asian paints hindered the entry of JSW Paints in contravention of Section 4(2) (c) of the Act. \u00a0Such practice not only leads to an effective and efficient competitor being driven out of a market or is restricted from entering a market, but also limit consumer choice.<\/p>\n<p style=\"text-align: justify;\"><strong>All instances of abusive conduct tantamount to perpetuating anti-competitive agreements as Asian Paints enjoys dominant position in the relevant market.<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>Commission\u2019s Decision<\/strong><\/p>\n<p style=\"text-align: justify;\">It noted that JSW Paints appears to be aggrieved by denial of market access by Asian Paints to distribution channels\/dealers in the market in abuse of dominant position held by Asian Paints.<\/p>\n<p style=\"text-align: justify;\">Commission held that, Asian Paint\u2019s conduct is alleged to directly aim at foreclosing the entry of a new entrant like JSW Paints from competing in relevant market and also driving existing competitor like Nippon out of the market.<\/p>\n<p style=\"text-align: justify;\">Asian Paints threatened the dealers to discontinue their supplies, disallowed discretionary discounts, etc. These restraints appear to be in the nature of exclusive supply agreement and refusal to deal. The stated restriction limits the benefits to the consumers as well.<\/p>\n<p style=\"text-align: justify;\">Thus, Commission hold that it is prima facie satisfied that imposition of said restraints amounts to contravention of Section 3(1) read with Sections 3(4)(b) and 3(4)(d) of the Competition Act, 2002 by Asian Paints which is prima facie found to enjoy market power.<\/p>\n<p style=\"text-align: justify;\">The present case requires investigation by the DG to determine whether the same has resulted in the contravention of the provisions of Section 4(1) of the Act and 3(1) read with Section 3(4) thereof. [JSW Paints Pvt. Ltd. v. Asian Paints Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/ubBoXAk2\"><b>2020 SCC OnLine CCI 1<\/b><\/a>, decided on 14-01-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Competition Commission of India (CCI): The Bench of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi, Members, while dealing <\/p>\n","protected":false},"author":8808,"featured_media":76441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[39658,34679,39657,39659],"class_list":["post-225874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-anti-competitive-agreements","tag-asian-paints","tag-jsw-paints","tag-punitive-action"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 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allegations made against Asian Paints were for offering arbitrary discounts and incentives to dealers in exchange of exclusivity by threatening the dealers against stocking the products manufactured Birla Paints and for coercing transport agents to avoid dealing in their products.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"abuse of dominance by Asian Paints","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/abuse-of-dominance-by-Asian-Paints.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/abuse-of-dominance-by-Asian-Paints.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/abuse-of-dominance-by-Asian-Paints.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/abuse-of-dominance-by-Asian-Paints.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":293743,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/03\/khaitan-co-acts-as-legal-counsel-to-jsw-infrastructure-limited-as-to-indian-law-in-relation-to-the-draft-red-herring-prospectus\/","url_meta":{"origin":225874,"position":1},"title":"Khaitan &#038; Co. acts as Legal Counsel to JSW Infrastructure Limited as to Indian Law in relation to the draft red herring prospectus","author":"Bhumika Indulia","date":"June 3, 2023","format":false,"excerpt":"DEAL DETAILS JSW Infrastructure Limited | Proposed initial public offering Khaitan & Co acted as Legal Counsel to JSW Infrastructure Limited as to Indian Law in relation to the draft red herring prospectus filed by JSW Infrastructure Limited in connection with the initial public offering of its equity shares of\u2026","rel":"","context":"In &quot;Law Firms News&quot;","block_context":{"text":"Law Firms News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/law-firms-news\/"},"img":{"alt_text":"jsw infrastructure limited","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jsw-infrastructure-limited.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jsw-infrastructure-limited.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jsw-infrastructure-limited.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/jsw-infrastructure-limited.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":213066,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/01\/naa-asian-paints-found-not-guilty-of-contravening-s-171-cgst-act-2017\/","url_meta":{"origin":225874,"position":2},"title":"NAA | Asian Paints found &#8220;not guilty&#8221; of contravening S. 171 CGST Act, 2017","author":"Bhumika Indulia","date":"April 1, 2019","format":false,"excerpt":"National Anti-Profiteering Authority (NAA): The Quorum of B.N. Sharma, Chairman and J.C. Chauhan, R. Bhagyadevi and Amand Shah, Technical Members, dealt with an application alleging profiteering on the supply of \u201cPaint\u201d by not passing on the benefit of reduction in the rate of tax of GST. For the above-stated issue,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":310543,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/01\/02\/calcutta-high-court-dismisses-berger-paints-trademark-infringement-plea-against-jsw-paints-scc-blog\/","url_meta":{"origin":225874,"position":3},"title":"Calcutta High Court dismisses Berger Paint\u2019s trademark infringement plea against JSW Paints due to lack of deceptive similarity","author":"Ritu","date":"January 2, 2024","format":false,"excerpt":"The Calcutta High Court stated that Trademark dilution protects well-known trademarks from losing their appeal when used in connection with diverse and dissimilar products or services.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":364394,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/21\/tamil-nadu-aar-rejects-auto-color-paints-itc-refund-adjustment-request\/","url_meta":{"origin":225874,"position":4},"title":"Read why AAR Tamil Nadu refused to admit Auto Color Paints\u2019 application for refund and Input Tax Credit adjustment over erroneous GST reporting","author":"Editor","date":"October 21, 2025","format":false,"excerpt":"In the present case, Auto Color Paints mistakenly reported purchase invoices as sales in GSTR-1 from 2017\u201418 to 2022\u201423, resulting in a loss of Input Tax Credit amounting to \u20b918.53 lakh. After the supplier refused adjustment, the applicant approached AAR, Tamil Nadu, seeking relief under Section 97 of the CGST\u2026","rel":"","context":"In &quot;Advance Rulings&quot;","block_context":{"text":"Advance Rulings","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/aar\/"},"img":{"alt_text":"Auto Color Paints&#8217; ITC refund","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":367559,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/24\/bom-hc-upholds-interim-relief-asian-paints-trademark-dispute\/","url_meta":{"origin":225874,"position":5},"title":"Bombay High Court upholds interim relief to Asian Paints in trade mark dispute, finds rival marks confusingly similar","author":"Editor","date":"November 24, 2025","format":false,"excerpt":"\u201cThis Court came to a prima facie finding of overall deceptive similarity in the rival marks and that the impugned marks and the artwork adopted by the defendant is deceptively and confusingly similar to that of the Asian Paint Ltd.\u2019s mark.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Asian Paints trade mark","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Asian-Paints-trade-mark.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Asian-Paints-trade-mark.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Asian-Paints-trade-mark.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Asian-Paints-trade-mark.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/225874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=225874"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/225874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/76441"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=225874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=225874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=225874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}