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ARTICLE · 27 OCTOBER 2014

Competition Commission’s Landmark Ruling Cracks The Whip On Auto Industry

The Competition Commission of India imposed an aggregate penalty of Rs. 25.54 Billion on fourteen car manufacturers for creating anti-competitive effects.

IndiaAntitrust/Competition Law
  • CCI holds anti-competitive behavior would be tested in respect of sale of spares and diagnostic tools as the market for spares and diagnostic tools constitutes a separate market.
  • Agreements between car manufacturers and dealers which restrict supply of spares and diagnostic tools in the open market held to be restrictive. Restrictions on supply in the market coupled with high margins on spares are anti-competitive.
  • Restrictive conditions to protect intellectual property rights are protected only subject to a party demonstrating that the agency that administers intellectual property rights in India has validly recognized (or is about to recognize) such rights. Technology transfer agreements do afford such protection.

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