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CCI serves notices to 17 car makers on anti-competitive practices

20 Sep 2012 Evaluate

Fair-trade regulator, Competition Commission of India (CCI), which has sent notices to 17 car makers, seeking their explanation on the alleged anti-competitive practice of selling spare parts to consumers at higher prices, is likely to schedule its hearing next month. The notices were sent to companies after the investigating arm of the competition watchdog, director general (DG) submitted an investigation report highlighting the anti-competitive practices of the companies, the name of which remain undisclosed.

Further, CCI is now 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 CCI last year against certain car makers for allegedly misusing dominant market position. Going by the complaint, the carmakers were making available spare parts only through their authorized dealers, who in turn sold them on high rate.

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