HNG FLOAT GLASS LTD. Vs. SAINT GOBAIN GLASS INDIA LTD.

JUDGEMENT

(1.) THE present information has been filed under section 19(1)(a) of the Competition Act, 2002 ('the Act') by M/s. HNG Float Glass Ltd. ('the informant'/HNG) against M/s. Saint Gobain Glass India Ltd. ('the opposite party'/SGGIL) alleging inter alia anti -competitive practices and abuse of dominant position in clear float glass market in India in contravention of the provisions of sections 4 of the Act. Facts, as stated in the information, may be noted. SGGIL is engaged in business of sale and distribution of float glass and it has dominated the float glass market in India over the years. Only in 2008 -09, many significant domestic players such as M/s. Gold Plus Glass Industry Limited ('Gold Plus'), HNG, M/s. Sezal Glass Limited ('Sezal') have entered into the float glass market. Gold Plus, Sezal and HNG are the only homegrown domestic players in the Indian glass industry that have not forayed into this business with the assistance of any specialized international glass manufacturing company.

(2.) AS per the informant, the three multinational companies such as SSGIL, M/s. Gujarat Guardian Limited ('GGL') and M/s. Asahi India Glass Limited ('AIS') operating in India have a culture and history of not adhering to the competitive market principles. They have been repeatedly held in violation of competition laws across the world for their anti -competitive practices. Saint Gobain (group entity of SGGIL) has, in particular, repeatedly attracted the ire of competition law enforcement authorities worldwide and has been penalized on numerous occasions for its anti -competitive conduct.

(3.) IN support of its allegation that SGGIL is dominant in the float glass market in India, the informant has submitted that SGGIL is the only manufacturer that is capable of producing all types of float glass for the Indian market. Further, SGGIL is also in the business of manufacturing of reflective glass which requires high investment, capabilities and modern technology. For a new entrant including the established manufacturers, it is difficult to enter into the reflective glass segment of the glass market. Thus, in the reflective glass segment SGGIL is enjoying near monopoly position.