Carmakers practices under scanner for wrongdoing

In a written reply in the Lok Sabha,Singh said the Competition Commission of India (CCI) has received certain information against some car makers.

Written by Agencies | New Delhi | Published:August 9, 2012 9:39 pm

Competition watchdog CCI is investigating allegations of anti-competitive practices by a section of carmakers,Minister of State for Corporate Affairs RPN Singh said today.

In a written reply in the Lok Sabha,Singh said the Competition Commission of India (CCI) has received certain information against some car makers.

“The CCI,which is a quasi-judicial body,is getting the matter investigated for appropriate action in the matter as per the provisions of the Competition Act,2002,” he said.

In 2011,a complaint had been filed against international car makers,accusing them of abusing their dominant market position by selling auto parts to customers at high prices.

The complainant said the car makers were abusing their dominant position by making available spare parts only through their authorised dealers,who in turn sell them on high rates.

The Commission,which became fully functional in 2009,with the appointment of a chairman and six members,at present has the power to check anti-competitive agreements and abuse of dominant position,drawn from Sections 3 and 4 of the Competition Act,2002.

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