Competition Commission Of India Delivers Its First RPM Decision

The Competition Commission of India ("CCI") has imposed a penalty on Hyundai Motors India Limited ("HMIL") for Resale Price Maintenance¹ ("RPM"). This has been the Country's first ever penalty for RPM. CCI concluded its first successful prosecution in relation to RPM , which is precluded in terms of Section 3(4) (e) and Section 3(4)(a) read with Section 3(1) of the Competition Act, 2002( "the Act") through arrangements which resulted in to RPM. CCI held that HMIL was engaged in prohibited vertical practices by imposing a maximum resale price on its downstream dealers by way of monitoring of maximum permissible discount level through a Discount Control Mechanism and a penalty mechanism for non-compliance of the discount scheme for the sale of motor vehicles. Further, CCI held that, HMIL has contravened the provisions of Section 3(4)(a) read with Section 3(1) of the Act in mandating its dealers to use recommended lubricants/ oils and penalizing them for use of