Competition Commission to serve notices to car makers over costly spare parts
MDT/PTI 03 September 2012

Carmakers are accused of abusing their dominant position by making available spare parts only through their authorised dealers, who in turn sell them at higher rates

New Delhi: The Competition Commission of India (CCI) may soon send notices to as many as 17 carmakers, seeking their explanations on an alleged anti-competitive practice of selling spare parts to consumers at high prices, reports PTI.


The Director General of CCI has submitted a report after its investigation into the matter and the fair-trade regulator would serve show-cause notices to the carmakers after analysing findings of the probe, sources familiar with the development said.


CCI would take a final decision on this alleged anti-competitive practice after taking into account the replies submitted by the carmakers, along with the probe report of its Director General, which serves as its investigating arm.


Sources said that the notices could be served to 17 car markers but did not disclose the names.


The Commission is pursuing the case under Section 4 of the Competition Act that relates to abuse of dominant position by enterprises.


The probe was conducted after a complaint was filed with the CCI last year against certain carmakers for allegedly abusing their dominant market position by selling spare auto parts to customers at high prices.


As per the complaint, the carmakers were accused of abusing their dominant position by making available spare parts only through their authorised dealers, who in turn sell them on high rates.


Last month, the government had also said that the CCI is investigating allegations of anti-competitive practices by a section of carmakers in the country.


In a written reply to the Lok Sabha, Minister of State for Corporate Affairs RPN Singh had said the Commission had received certain information against some carmakers.


"The CCI, which is a quasi-judicial body, is getting the matter investigated for appropriate action in the matter as per the provisions of the Competition Act, 2002," the Minister had said.


Generally, CCI refers the complaints related to anti-competitive practices for further investigation by its Director General (DG), before taking any action.


CCI has the mandate to eliminate practices that have adverse impact on competition and protect the interests of consumers.

9 years ago
The Competition Commission of India should also send notices to Two wheeler manufacturers especially the one with foreign collaborators. I was refused a spare part (rear end shock absorbers) at Honda Activa showroom, using the cover, "Out of Stock." No idea when the stock will come?" If the same is out of stock, how come they manage to repair/service vehicles brought there for the same. I hope this will bring an end to the extremely costly replacements as we are not yet reach the stage of Use and Throw by giving two wheelers at the Authorized Showrooms/Service Centers.
Veeresh Malik
9 years ago
Brilliant step by the Competition Commission of India - as it becomes increasingly difficult to operate cars and bikes in India without getting into the clutches of these crooks.

Here's a good idea of how this has progressed in other countries - and what we should get from the manufacturers too:-
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