CCI Orders Probe into Asian Paints' Alleged Market Abuse

Says co imposing unfair conditions on dealers by restraining them from working with others

- Gireesh Chandra Prasad & Nehal Chaliawala

India's competition watchdog has ordered an investigation into Asian Paints Ltd for allegedly abusing its dominance in the decorative paints market, which has seen a recent rush of business giants enter the space.

The Competition Commission of India (CCI) on Tuesday ordered the probe on a reference filed by Grasim Industries Ltd, the flagship company of the Aditya Birla Group, which entered the decorative paints market under the brand name Birla Opus Paints in February 2024.

CCI said there was a 'first impression case' of India's largest decorative paints company allegedly imposing unfair conditions on its dealers by restraining them from working with competitors like Birla Opus. This "is found to be in the nature of exploitative conduct", CCI said in its order, signed by CCI chairperson Ravneet Kaur and three members.