CCI imposes penalty of Rs 2,544.64 cr on 14 car
companies
26/08/2014 11:04
The Competition Commission of India has slapped fine of Rs 2544.64 crores on 14 car companies in contravention of the provisions of the Competition Act, 2002, for building a dominant position in the market of spare parts, according to an official statement released by Ministry of Corporate Affairs. “The commission imposed a penalty calculated at the rate of 2 per cent of the average turnover of the 14 Car companies amounting to Rs 2544.64 crores in aggregate. The penalty is to be deposited within 60 days of receipt of the order,” the ministry said in a press release. “The 14 car companies were found to be indulging in practices resulting in denial of market access to independent repairers as the latter were not provided access to branded spare parts and diagnostic tools which hampered their ability to provide services in the aftermarket for repair and maintenance of cars,” the release said. Having a monopolistic control over the spare parts and diagnostic tools of their respective brands, the car companies charged arbitrary and high prices for their spare parts. The car companies were also found to be using their dominant position in the market for spare parts and diagnostic tools to protect their market for repair services, thereby distorting fair competition, it added.
26/08/2014 11:04
The Competition Commission of India has slapped fine of Rs 2544.64 crores on 14 car companies in contravention of the provisions of the Competition Act, 2002, for building a dominant position in the market of spare parts, according to an official statement released by Ministry of Corporate Affairs. “The commission imposed a penalty calculated at the rate of 2 per cent of the average turnover of the 14 Car companies amounting to Rs 2544.64 crores in aggregate. The penalty is to be deposited within 60 days of receipt of the order,” the ministry said in a press release. “The 14 car companies were found to be indulging in practices resulting in denial of market access to independent repairers as the latter were not provided access to branded spare parts and diagnostic tools which hampered their ability to provide services in the aftermarket for repair and maintenance of cars,” the release said. Having a monopolistic control over the spare parts and diagnostic tools of their respective brands, the car companies charged arbitrary and high prices for their spare parts. The car companies were also found to be using their dominant position in the market for spare parts and diagnostic tools to protect their market for repair services, thereby distorting fair competition, it added.
