Simultaneous application of Section 3 and 4 of Competition
Act, 2002 may not be as straight-forward as it appears.
Giving a ray of hope to car owners and independent car repair
shops in the country, the Competition Commission of India (CCI)
recently penalised 14 car manufacturers for entering into
anti-competitive agreements and abusing their dominant position in
their respective car aftermarkets.1
The CCI has rightfully garnered plaudits for taking on the
practices carried on by the automobile manufacturers (who may
understandably be full of scorn).
Essentially, the CCI found that car manufacturers enjoy a
dominant position in the markets for spare parts and after-sales
service of their respective brand of cars [Para. 20.5.70].
Consequently, among others, the restriction on original equipment
suppliers against sale of spare parts and diagnostic tools and
manuals to independent service providers constituted abuse of
dominant position [Paras.20.5.83 and 20.5.84].
