Rajeev Bakshi Vs Nissan Motor India Pvt. Ltd. (Competition Commission of India)
The Competition Commission of India (CCI) considered information filed under Section 19(1)(a) of the Competition Act, 2002 alleging contravention of Sections 3 and 4 by an automobile manufacturer. The informant, an authorised dealer, contended that its dealership agreement was terminated before expiry of its term without a show cause notice, reasons or opportunity of hearing. It was further alleged that the manufacturer adopted coercive pricing policies, forced investments, delayed reimbursements, bypassed dealer networks and imposed anti-competitive vertical restraints, including resale price maintenance, exclusive distribution and refusal to deal. Abuse of dominant position under Section 4 was also alleged.
The CCI observed that the relationship between the parties was governed by a dealership agreement. On the allegations under Section 3(4), it noted that the informant had not produced evidence showing that the manufacturer had prevented dealers from acquiring dealerships of competing manufacturers. Publicly available information indicated that the informant had, during the subsistence of the dealership, acquired another dealership of a different automobile manufacturer. Accordingly, the allegation of exclusive dealership or exclusive supply restriction was found to lack substance.
Regarding resale price maintenance, the Commission examined the dealership agreement and found that dealers were only prohibited from selling vehicles above the Maximum Recommended Retail Price (MRRP). The agreement expressly permitted dealers to sell vehicles below the MRRP. Therefore, the allegation of resale price maintenance was not accepted.
