India Probe Finds Tata Steel, Jsw Steel, Sail Breached Antitrust Law, Regulatory Order Shows: Report

The Indian competition regulator has finalised its investigation, finding that the country's dominant steel companies, Tata Steel, JSW Steel, and Steel Authority of India Ltd. (SAIL), had conspired to fix prices together.

The giants of the sector, according to a prosecution order by the Competition Commission of India (CCI), with a date of 6 October, participated together with 25 other companies in schemes to manage steel prices. The inquiry together with responsibilities of wrongdoing has also targeted 56 top managers for wrongdoing spanning from 2015 to 2023. Some of those cited are big shots like JSW Steel Managing Director Sajjan Jindal, Tata Steel CEO T.V. Narendran, and four ex-chairpersons of SAIL.

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Expanding Investigation Scope

The case was initiated in 2021 on a complaint by a builders' association to a court in the state of Tamil Nadu. The aggrieved associations reported that steel production was reduced and the price was increased by 55% within six months. Although the case started with nine firms, the crackdown on smaller steel producers led to the investigations going to 31 entities and associations by 2022.

In internal government records, the CCI found collusion in digital communications. According to a memo written in July 2025, the government accessed WhatsApp messages between regional sector associations and steel product makers. These communications suggest cartel-like activity in limiting production and manipulating prices through collective action.

Regulatory Process and Potential Penalties

October 6 marks an important milestone for regulators. While there has been an infringement of antitrust rules on the part of both parties, this is definitely not the end of the story just yet. The report continues to an examination by high-ranking bureaucrats at CCI, where there would also be an opportunity for objection by these companies and an explanation for these actions. This process may extend over several months because of its countrywide implications for antitrust rules.

However, if the final order is to support the findings, this may cause a significant effect on the financial aspects. As per antitrust laws in India, CCI may impose a penalty of up to 10% of a firm's turnover or three times profits for all years of contravention. To calculate this penalty, they have already asked for audited financials for eight years ending in 2023.

Market Reaction and Financial Context

Steel is a mainstay sector in infrastructure-driven growth in India. India is the second-largest crude steel producer in the global market. In terms of market share, JSW Steel has around 17.5%, Tata Steel 13.3%, and SAIL 10%.

When the results of the investigation surfaced in the media, the mood shifted rapidly in the markets. Stocks of the companies under the scanner began to see downward movement as JSW Steel slid marginally over 1%, SAIL plummeted around 3.2%, and Tata Steel edged lower as the news began to spread.