Regulatory Bombshell: Tata Steel, JSW Steel, SAIL Breached Competition Law

As CCI Tightens Its Grip, the Regulatory Order against Leading Steelmakers Sends a Clear Message on Market Accountability

India’s antitrust regulator has found Tata Steel, JSW Steel, and SAIL in breach of competition laws, according to a regulatory order. It raises concerns over pricing and market conduct in the steel sector.

India Antitrust Investigation

India's competition watchdog has found market leaders Tata Steel, JSW Steel, state-run SAIL, and 25 other firms breached antitrust law by colluding on steel selling prices, a confidential document shows.

The Competition Commission of India (CCI) has also held 56 top executives, including JSW's billionaire Managing Director Sajjan Jindal, Tata Steel CEO T.V. Narendran, and four former SAIL chairpersons, liable for price collusion over varying periods of time between 2015 and 2023.

The CCI order dated October 6 has not been made public and is being reported for the first time. The investigation started in 2021 after a group of builders alleged in a criminal case brought to a state court that nine companies were collectively restricting the supply of steel and increasing prices.

The probe was later expanded to as many as 31 companies and industry groups. Under CCI rules, details of cases related to cartel-like activity are not made public before they have concluded.

The CCI investigation has "found the conduct of the parties to be in contravention" of Indian antitrust law and "certain individuals have also been held liable," the order stated.

Coimbatore Corporation Contractors Welfare Association alleged in a case it brought before a Tamil Nadu state court in 2021 that steel companies had hiked prices by 55% during six months to March 11 that year, and were artificially boosting prices by restricting supply to builders and consumers.

Will Steel Companies Face Significant Fines?

The CCI is empowered to impose penalties on steel companies of up to three times their profit or 10% of turnover, whichever is higher, for each year of wrongdoing. Individual executives can also be fined. 

India is the world's second-largest producer of crude steel, and demand for the alloy has been rising as infrastructure spending has increased in the fast-growing major economy.

Market Performance of Major Steel Companies

JSW Steel has 17.5% of the Indian market, Tata Steel 13.3%, and SAIL 10%, according to data from commodities consultancy BigMint.

In the last fiscal year to March 2025, JSW Steel reported standalone revenues of $14.2 billion, while Tata Steel's were $14.7 billion.

Final Thoughts

Following the news break, the shares in JSW Steel extended losses to 1.33%, SAIL was down 3.2%, and Tata Steel turned negative and fell as much as 0.7%. 

Other companies in the CCI document that were found to have allegedly colluded on prices were Shyam Steel Industries, state-run Rashtriya Ispat Nigam, and other smaller-sized firms.

The CCI has asked the steel companies to submit their audited financial statements for the eight financial years to 2023, the October order showed. The watchdog typically seeks such details to calculate potential penalties.

The probe’s findings underscore the growing focus on fair competition in India’s industrial sectors. The steel industry could see tougher enforcement, policy reforms, and closer monitoring in the months ahead.