Fair trade regulator CCI has closed the case against textile machine maker Lakshmi Machine for alleged abuse of dominant position in the market for “sale of spinning machinery for textiles”.

“ ... despite the fact that the opposite party (Lakshmi Machine Works) was a dominant player in the relevant market, mere increase in prices by the opposite party for valid economic reasons for all of its customers cannot amount to imposing of unfair or discriminatory conditions in purchase or sale of goods or services,” the Competition Commission of India (CCI) said in its order dated February 15.

In a complaint filed by Shahi Exports, it was alleged that Lakshmi Machine Works had increased the price of textile machineries it had ordered.

According to the order, during the arbitration proceedings with the complainant, Lakshmi Machine Works had submitted that the increase in price was due to increase in cost of inputs such as raw materials and labour, among others.

CCI noted that Lakshmi Machine Works had been “increasing the price of its products at regular intervals and it was not discriminating with any of its customers but had increased the prices for all of its customers alike”.

(This article was published on February 20, 2013)
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