CCI to hear carmakers on anti-competitive issues

Carmakers will present their views before the Competition Commission this week, on allegations of selling spare parts at higher prices to consumers.

Fair trade regulator Competition Commission of India (CCI) had issued show cause notices to 17 carmakers, including foreign entities, regarding allegations of providing spare parts to customers at higher prices.

The commission would start hearings of carmakers from tomorrow. The hearings would go on for about three to four days, according to a source in the know. The notices were served after the Commission’s investigation arm Director General submitted the report on the issue.

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A final decision on the alleged anti-competitive practice would be taken after taking into consideration explanations for the carmakers as well as the Director General’s report.

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The Commission is proceeding with the case under Section 4 of the Competition Act that relates to abuse of dominant position by enterprises.

The probe was conducted after a complaint was filed with the CCI last year against certain carmakers for allegedly abusing their dominant market position by selling spare auto parts to customers at high prices.

Going by the complaint, the carmakers were making available spare parts only through their authorised dealers, who in turn sold them on high rates. In August, the government had said the CCI is investigating allegations of anti-competitive practices by a section of carmakers in the country.

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In a written reply to the Lok Sabha, Minister of State for Corporate Affairs R P N Singh had said CCI had received certain information against some carmakers. “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,” the Minister had said.

PTI