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CCI Probing Automobile Anti-Competitive Practices

By Motortrend India Staff   |   03 May,2013

Car manufacturers are being probed by CCI (fair trade regulator) for anti-competitive practices in their businesses. Corporate Affairs Minister Sachin Pilot said answering to a question asked in Lok Sabha whether CCI has issued notices to 17 major car manufacturers for cartelisation. None of the auto makers name was revealed. Market leader Maruti declined to comment on the issue.

17 auto makers have allegedly abused their dominant market position by making spare parts available only through their authorised dealership networks, who in turn are accused of selling spare parts at high prices.

The Competition Commission of India (CCI) has sent show-cause notices to 17 automobile manufacturers following complaints from auto customers that auto majors are selling parts only through their authorised dealers forcing customers to pay higher prices for auto components.

The CCI is authorised to check anti-competitive business agreements and misusing dominant status to take undue advantages, as per the Competition Act, 2002. The commission’s is functioning under the leadership of Ashok Chawla, who had handed 12 cement companies with record fines of more than $ 1.1 billion for price-fixing.

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