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Competition Commission of India Conducts First-Ever Raid

Earlier this week, India’s competition regulator─the Competition Commission of India (“CCI”)─raided two offices of JCB India Limited (“JCB”), a UK-based manufacturer of construction equipment.  This raid marks the first time that CCI has exercised its search-and-seizure power under the Competition Act, 2002.

Events leading up to the raid began in March 2014 when one of JCB’s competitors, Bull Machines, alleged that JCB had abused the judicial process by filing a sham litigation in Delhi’s High Court to prevent Bull Machines from entering the market for backhoe loaders.  (Backhoe loaders are large pieces of construction equipment that are fitted with a shovel, a bucket, and a backhoe.)

CCI subsequently found prima facie evidence that JCB and its subsidiary had abused its dominant market position and ordered a detailed probe into the matter.  CCI’s raid is its latest step in its investigation of JCB.