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CCI likely to hear car makers next month on anti-competition

Last Updated: Sunday, November 25, 2012 - 12:46

New Delhi: Fair trade regulator Competition Commission of India is expected to hold hearings of car makers early next month on allegations of selling spare parts at jacked up prices to customers.

Though the hearings were to start last month, sources said that car makers sought more time to respond to the notices send by the Commission.

According to sources, the hearings are now expected to start in (early) December.

The regulator, which has the mandate to keep a tab on anti-competitive practices in the market, had served notices to 17 car makers, including foreign ones. It pertained to allegations that the companies sold spare parts at higher prices to its customers.

The Commission's investigative arm, Director General (DG), has submitted a detailed and voluminous report on the allegations against the car makers. Notices were issued based on the report.

Once the hearings are completed, the Commission would take a final decision after also taking into consideration the report of the Director General.

The case is being pursued under Section 4 of the Competition Act that relates to abuse of dominant market position by enterprises.

The DG was asked to probe the car makers after a complaint last year alleged that certain car makers were abusing their dominant position by selling spare auto parts at high prices.

It was alleged that the car makers were making available spare parts only through their authorised dealers, who in turn sold them on high rates.


First Published: Sunday, November 25, 2012 - 12:46
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