CCI serves notices to 17 car makers

* Notice sent after probe into anti-competitive practices regarding sale of spare parts

Written by ENS Economic Bureau | New Delhi | Published: September 20, 2012 1:14:30 am

The Competition Commission of India (CCI) has sent notices to 17 car makers alleging anti-competitive practice of selling spare parts at higher prices to consumers and has given them 15 days to reply.

“The director general – investigation has found that the companies were indulging in anti-competitive practices in case of providing spare parts after sale. We have sent notices to 17 car makers based on the report,” Ashok Chawla,chairman,CCI,told The Indian Express.

The director general – investigation,submitted the report to the Commission a few days ago with findings that the companies were in violation of Section 4 of the Competition Act that pertains to abuse of dominant position.

The hearing in the matter is likely to take place sometime next month.

A complaint was filed last year against certain carmakers for allegedly abusing their dominant market position by selling spare parts to customers at high prices.

The complaint said that the spare parts were being sold only through their authorised dealers,which resulted in buyers having to cough up high rates. Following the complaint,a probe was ordered by the CCI.

Almost all major foreign car makers have their presence in India including Suzuki,Hyundai,Toyota,Volkswagen,Honda,Ford and General Motors. Some of them also have their auxiliary units in the country.

In August,the government had said the CCI is investigating allegations of anti-competitive practices by a section of car makers in the country. In a written reply to the Lok Sabha,Minister of State for Corporate Affairs

RPN Singh had said CCI had received certain information against some carmakers.

“The CCI is getting the matter investigated for appropriate action in the matter as per the provisions of the Competition Act,2002,” Singh had said.

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