New Delhi: Taking a stern view against failure of car companies to make their spare parts easily available in the market, Competition Commission of India has imposed a penalty of Rs 420.26 crore on Hyundai Motor India and asked two others — Reva and Premier — to ‘cease and desist’ from anti-competitive practices.
With this, the CCI has imposed penalties on 15 car companies for failing to freely provide their spare parts in the market. In an earlier order in August, CCI had imposed a penalty of Rs 2,544 crores on 14 car companies for anti-competitive practices of not selling their spare parts in the open market. However, at that time CCI has reserved its order against Hyundai, Reva and Premier to give them “reasonable opportunity to make their submissions”. The Commission said that there are certain “mitigating factors” which work in favour of Premier and Reva and therefore, the Commission has decided not to impose any monetary penalty against the two.
CCI said that the commission found car companies conduct to be in violation of the provisions of competition act “in their agreements with local original equipment suppliers and agreements with authorised dealers whereby they imposed absolute restrictive covenants and completely foreclosed the after market for supply of spare parts and other diagnostic tools.”
Further the Commission found that the car companies, who were found to be dominant in the after markets for their respective brands, abused their dominant position....