CCI orders probe against Asian Paints for abuse of dominant position 

The Competition Commission of India has ordered a probe into allegations made by Aditya Birla Group company Grasim Industries against Asian Paints for alleged abuse of its dominant position in the paints segment.

As per the material placed on record by Grasim Industries, it appears that Asian Paints has been restraining third parties like suppliers of essential raw materials, warehousing landlords, C&F agents and transporters, from engaging with Grasim Industries which has led to denial of market access to competitors like Grasim Industries.

Grasim has also alleged that it was subjected to a fake smear campaign by Asian Paints in Srinagar last July to malign its image in the market, it said in an order issued on Tuesday.

The Commission is of the opinion that a prima facie case of contravention of the law by Asian Paints is made out in the present matter.

Unfair conditions

By way of restraining its dealers from dealing with competitors like Grasim by enforcing exclusivity upon such dealers is imposing unfair conditions upon them, which is found to be in the nature of exploitative conduct.

Thus, it said conduct of Asian Paints seems to be prima facie causing an appreciable adverse effect on competition in India.

Accordingly, the Commission directed the Director General to investigate the the matter and submit an investigation report in 90 days of the receipt of the present order.

Published on July 1, 2025