The Competition Commission of India has penalised Panasonic Energy India Co Ltd and Godrej & Boyce for cartelisation in the dry cell battery market, but exempted Panasonic from paying any penalty as it provided critical information in the case.

This is the third lesser penalty case with respect to cartelisation in the zinc-carbon battery market. While Panasonic was let off with zero penalty, the CCI levied a penalty of ₹85 lakh on Godrej & Boyce Manufacturing Co Ltd, the other colluding party in the cartel.

The case was taken up by the Commission suo motu based on the disclosure made by Panasonic under the Lesser Penalty Regulations. A ‘lesser penalty’ applicant is someone who has provided vital disclosure and relevant information, documents and evidence as may be required by the Commission in a case. He enjoys a priority status in the queue of applicants and is granted a reduction in penalty.

During the investigation, CCI found bilateral ancillary cartel between Panasonic and Godrej & Boyce in the market of institutional sales of dry cell batteries. It also found that Panasonic was already involved in the primary cartel with Eveready Industries India Ltd and Indo National Ltd. Panasonic used that knowledge to negotiate and increase the basic price of the batteries sold by it to Godrej & Boyce, the Commission said in its order.

The evidence collected include the written agreement entered between Panasonic and Godrej & Boyce for supply of batteries, and e-mail communications between the key managerial personnel of the two of them.

The order said, “Considering all the relevant factors, penalty on Panasonic was levied at the rate of 1.5 times of its profit for each year from January 2012 to November 2014 amounting to ₹31.76 crore, which was waived off. On Godrej & Boyce, penalty was levied at the rate of 4 per cent of its turnover for each year from January 2012 to November 2014 amounting to ₹85 lakh.”

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