CCI exercises leniency in electric power steering cartel

The Competition Commission of India (CCI) has passed its 10th leniency order involving an application under the Lesser Penalty Regulations, 2009.

“The CCI’s key focus continues to be cartel enforcement and it uses its twin tools of leniency and dawn raids to ensure robust cartel enforcement,” said Nisha Kaur Uberoi, partner and national head of competition law at Trilegal.

On 9 August, the CCI found NSK and its Indian joint venture, Rane NSK Steering Systems (RNSS), along with JTEKT Japan and its Indian joint venture JTEKT Sona Automotive India (JSAI), engaged in a cartel related to the electric power steering (EPS) systems market in India, contravening section 3 of the Competition Act, 2002.

Despite finding the parties guilty of anti-competitive conduct in relation to the supply of EPS systems, the CCI reduced their penalties on account of the applications made by them under the Lesser Penalty Regulations. NSK and RNSS were let off without having to pay a penalty because NSK was the first leniency applicant to disclose the existence of the cartel, and provided “complete, full and true disclosures” as per Uberoi.