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ARTICLE · 02 SEPTEMBER 2014

CCI Penalizes 14 Car Makers For Market Abuse And Vertical Restraints

Vaish Associates Advocates
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The Competition Commission of India has imposed a fine totalling INR 2544 crore rupees on 14 car manufacturers for violating the Competition Act, 2002.

IndiaAntitrust/Competition Law
MM Sharma, Head Competition Law & Policy Practice
MM Sharma, Head Competition Law & Policy Practice
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On 25.08.2014, in a landmark ruling, Competition Commission of India (CCI) has imposed a fine totalling INR 2544 crore rupees (USD 420 million) on 14 car manufacturers (OEMs) for restricting the sale and supply of genuine spare parts in open market thereby violating Section 3(4) & Section 4 of the Competition Act, 2002. The companies fined by CCI are BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra & Mahindra, Maruti Suzuki, Mercedes-Benz India, Nissan Motor India, Skoda Auto India, Tata Motors, Toyota, Honda India, Volkswagen India and Fiat India. CCI is yet to pass final order against Hyundai India, Mahindra Reva and Premier.

Facts of the Case

The Information has been filed by Mr. Shamsher Kataria against Honda India, Volkswagen India and Fiat India for violating Section 3 and 4 by restricting the supply of genuine spare parts in the open market. The Informant alleged that:

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