The Competition Commission of India (CCI) has closed the case against textile machine maker Lakshmi Machine Works (LMW) for alleged abuse of dominant position in the market for ‘sale of spinning machinery for textiles’.

“... despite the fact that the opposite party (LMW) was a dominant player in the relevant market, mere increase in prices by the opposite party for valid economic reasons for all of its customers cannot amount to imposing of unfair or discriminatory conditions in purchase or sale of goods or services,” CCI said in its order dated February 15.

In a complaint filed by Shahi Exports, it was alleged that LMW had increased the price of textile machineries it had ordered.

As per the order, during the arbitration proceedings with the complainant, LMW had submitted that the increase in the price was due to increase in cost of inputs such as raw materials and labours.

The CCI noted that LMW had been “increasing the price of its products after regular intervals and it was not discriminating with any of its customers but had increased the prices for all of its customers alike.”


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