Re Maruti Suzuki India Limited (Competition Commission Of India)
The Competition Commission of India (CCI) imposed a ₹200 crore penalty on Maruti Suzuki India Ltd (MSIL), for allegedly stifling competition with its policy of controlling the discounts dealers could offer consumers.
Commission concludes that MSIL not only entered into an agreement with its dealers across India for the imposition of Discount Control Policy amounting to RPM, but also monitored the same by appointing MSAs and enforced the same through the imposition of penalties, which resulted in AAEC within India, thereby committing contravention of the provisions of Section 3(4)(e) read with Section 3(1) of the Act.
Under the provisions of Section 27(b) of the Act, the Commission is empowered to impose upon an entity contravening the provisions of Section 3 and/or Section 4 of the Act, penalty as it may deem fit, which shall not be more than ten percent of the average of the turnover of the entity for the last three preceding financial years.
Having considered the nature of the infringing conduct and the post–pandemic phase of recovery of automobile sector, the Commission takes a considerate view and deems it appropriate to impose a penalty of ₹200 crores (Rupees Two Hundred Crores) only upon MSIL, as against a maximum penalty permissible under the provisions of the Act, which may extend upto ten percent of the average of the turnover of the entity for the last three preceding financial years.
COMPETITION COMMISSION OF INDIA
Suo Motu Case No. 01 of 2019
In Re: Alleged anti-competitive conduct by Maruti Suzuki India Limited in implementing discount control policy vis-à-vis dealers
