Is protecting ‘competitors’ over ‘competition’ creating regulatory uncertainty?

THE RECENT BOMBAY High Court judgement of 11 September 2025 against Asian Paints, upheld by the Supreme Court on October 13 2025, has attracted media attention. These verdicts have created a perception of regulatory uncertainty in corporate boardrooms, whether “competitors” are being protected at the cost of “competition” due to the High Court’s rejection of res judicata, a concept recently introduced by the Competition Amendment Act, 2023. Such perception can hinder our economy’s growth, warranting further debate.

- M M SHARMA

India’s decorative paints industry has witnessed heightened competition following the entry of JSW Paints in 2019 and Birla Opus (Grasim Industries Ltd.) in 2024. Alleging that Asian Paints pressured dealers not to stock their products, both new entrants approached the Competition Commission of India (CCI) with similar claims of abuse of dominance. Whereas JSW Paints filed the complaint in 2019, Birla Opus filed in 2024. Noticeably, both approached CCI within a few months of the launch of their brands against Asian Paints with similar allegations.