Competition panel imposes Rs 2,545 crore fine on carmakers

The companies penalised by the panel include Maruti Suzuki, Honda Motor Company, Tata Motors, Fiat India, BMW India, Volkswagen India, Ford India, Hindustan Motors, General Motors India, Mahindra & Mahindra, Skoda Auto India, Mercedes-Benz India, Nissan Motor India, and Toyota Kirloskar Motor.

A detailed investigation by the commission found that these automakers denied access to branded spare parts and diagnostic tools to independent repairers, thereby hindering them from carrying out the repair and maintenance work of certain car models.

The investigation report also revealed that these carmakers violated rules with respect to agreements with local original equipment suppliers, as well as pacts with authorised dealers.

“The commission found that the conduct of the car companies was in violation of the provisions of section 3(4) of the Act with respect to its agreements with local original equipment suppliers (OESs) and agreements with authorised dealers whereby it imposed absolute restrictive covenants and completely foreclosed the after-market for supply of spare parts and other diagnostic tools,” CCI said in the statement.

The car companies have been directed by the commission to cease and desist from indulging in conduct which has been found to be in contravention of the provisions of the Act. The competition regulator has also directed the carmakers to put an effective system in place to make sure that these spare parts and diagnostic tools are made easily available in the open market for customers and independent repairers.

All the 14 carmakers penalised by CCI will have to deposit two per cent of its turnover in the past three years within 60 days of receipt of the order.