The Competition Commission of India (CCI) has dismissed allegations of abuse of dominance against IREL (India) in the market for Beach Sand Ilmenite..The complaint, filed by the Beach Mineral Producers Association, accused IREL of violating Section 4 of the Competition Act, 2002 by imposing unfair conditions, practicing discriminatory pricing and denying market access. .CCI held, "Holistically considering the facts and circumstances of the matter, the material available on record, and based on foregoing analysis, the Commission is of the view that though the OP (IREL)...is found to be in a dominant position in the relevant market of ‘mining and sale of Beach Sand Ilmenite in India’, no case of contravention of provisions of section 4(2)(a)(i), 4(2)(a)(ii) or 4(2)(c) of the Act is made out against the OP in the present matter.".The informant alleged that IREL, as the sole producer of Ilmenite in India, abused its dominant position through several practices. These included imposing unfair terms in sales contracts, discriminating in pricing between domestic and international customers, denying market access to domestic consumers, and engaging in excessive pricing. These accusations painted a picture of IREL leveraging its market position to the detriment of competition and consumers. .The CCI defined the relevant market as "mining and supply of Beach Sand Ilmenite in India," specifically excluding substitutes like Synthetic Rutile, Rutile, Titanium Slag and imports.Based on IREL's market share exceeding 90% in 2021-22, regulatory barriers to private entry and limited buyer power, the CCI determined that IREL held a dominant position within this defined market. The issue was referred for investigation by the Director General (DG). However, the DG's investigation found no evidence supporting the claim of price discrimination between domestic and foreign buyers..In its arguments, IREL had contended that it was not an ‘enterprise’ under Section 2 (h) of the Competition Act, 2002, owing to it being affiliated with the Department of Atomic Energy.However, the CCI found that IREL is Public Sector Undertaking designated as Miniratna Category-I..CCI said, "After considering the arguments put forth by the parties, the Commission is of the considered view that pricing decisions take into account market dynamics, demand supply equilibrium, other avenues of procurement of the same product, bargaining power between buyer and seller, etc. In the present matter, based on the price comparison of IREL’s domestic market price vis-à-vis its export price and import price of Ilmenite, the price of the OP does not appear to be excessive. Sufficient evidence has not been brought on record to establish a case of excessive pricing in this matter.".In October 2024, CCI dismissed a plea against IREL pertaining to a mineral called Beach Sand Sillimanite..IREL was represented by Senior Advocate Tarun Gulati, with Advocates Abhay Joshi, Aayushi Sharma, Bhaavi Agrawal, Pavan Kalyan and Shruti from Economic Laws Practice (ELP)..Read Judgment
