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ARTICLE · 05 NOVEMBER 2019

Another Case Of RPM In Automobile Sector In India ?

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It was also alleged that similar Discount Control Mechanism is also being implemented by MSIL across India- specifically in cities where more than 4-5 dealers operate.

IndiaAntitrust/Competition Law
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Article by MM Sharma, Head Competition Law & Policy Practice, Vaish Associates, Advocates, New Delhi, India

Are the Original Equipment Manufacturers (OEMs) in the automobile sector in India used to indulge in resale price maintenance (RPM) by dictating minimum resale prices of (at least) cars to their dealers by putting in place a subtle and well-designed mechanism to control the maximum discounts that the dealers may give to the car buyers , in disregard to the competition laws , or they are victims of some emerging clandestine understanding between some dealers , who are finding the antitrust regulator a more suitable forum to settle commercial disputes with the OEMs?

The above question may seem pertinent if you are told that the two largest car makers in India have faced antitrust scrutiny on complaints of precisely the same modus operandi of controlling the dealers' discounts . First it was the case of Hyundai Motors India Ltd. in 2017 1, the second largest

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