Case Law Details
XYZ Vs Ola Electric Limited (Competition Commission of India)
Introduction: The Competition Commission of India (CCI) has recently received a complaint under Section 19(1) (a) of the Competition Act, 2002 against Ola Electric Ltd. and other major players in the Electric Two Wheeler (ETW) market. The Informant alleges a violation of Section 4 of the Act, accusing these companies of exploiting the Faster Adoption and Manufacturing of Electric & Hybrid Vehicles Policy (FAME) for their advantage.
Background: The FAME policy was initiated in 2015 by the Ministry of Heavy Industries and Public Enterprises to promote the adoption of electric and hybrid vehicles in India. The Informant claims that Ola, VIDA Hero Moto Corp, TVS Motors, and Ather Energy have manipulated the policy by selling essential components separately, enabling them to remain within the government-mandated limit of INR 1.5 Lac ex-factory prices for 2-wheelers.
Allegations: The Informant contends that the accused companies have consistently breached the INR 1.5 Lac threshold by selling integral equipment such as chargers and proprietary software outside this limit. This alleged pricing strategy has allowed them to secure prices ranging from INR 1.6 to 1.8 lakhs, thereby taking advantage of the FAME policy’s subsidies and depriving genuine manufacturers from accessing the budget allocated for Electric Vehicles (EVs) under the INR 1.5 Lac threshold.
Abuse of Dominance and Adverse Effects on Competition: The Informant asserts that the accused entities are abusing their dominant position in the market, resulting in an adverse effect on competition. The alleged predatory pricing tactics involve presenting the final product within the FAME policy’s price limit, while essential components necessary for the vehicle’s operation are sold separately. This, according to the Informant, denies market access to smaller manufacturers, impacting competition negatively.
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