Case Law Details
Sri Balaji Enterprises Vs Hero Moto Corp. Limited (Head Office) (Competition Commission of India)
The Competition Commission of India (CCI) has issued a clean chit to Hero MotoCorp, dismissing allegations of anti-competitive behavior. The case was filed by Sri Balaji Enterprises, a distributor of parts, who raised concerns about Hero MotoCorp’s trade discounting policy. In this article, we provide a detailed analysis of the CCI’s order and its implications.
Detailed Analysis
Background: Sri Balaji Enterprises filed a complaint under Section 19(l) (a) of the Competition Act, 2002, alleging violations of Sections 3 and 4 of the Act by Hero MotoCorp and several other entities collectively referred to as the “OPs.”
Trade Discount Policy: The Informant claimed that Hero MotoCorp’s trade discount policy for the year 2019-20 was unfair. The policy required Hero Genuine Part Distributors (HGPDs) to operate on advance payments with a super stockist. It also imposed penalties for delayed payments and set a cap on stock purchases.
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