The Competition Commission of India slapped a penalty of Rs.2,545 crore on 14 carmakers for abusing their dominant position by making available spare parts only through their authorised dealers, who in turn sell them at higher rates. The Commission considers it necessary to (i) enable the consumers to have access to spare parts and also be free to choose between independent repairers and authorized dealers and (ii) enable the independent repairers participate in the after market and provide services in a competitive manner and to have access to essential inputs such as spare parts and other technical information for this purpose, as part of a more competitive eco-system The penalty is 2% of the average turnover in the past three years . It has to be deposited within 60 days of receipt of the order. In its order, the Commission said that anti-competitive conduct impacts a very large number of consumers in the country estimated to be around two crore. This has further restricted the expansion of spare parts and independent repairers segment of the economy to its full potential, at the cost of the consumers, service providers and dealers.
Posted on: Thu, 28 Aug 2014 06:21:40 +0000
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