Home / Latest News / Competition Commission of India penalises Hyundai Motor India with Rs.87 Crore Fine

Competition Commission of India penalises Hyundai Motor India with Rs.87 Crore Fine

June, 14 2017:

Company mandated its dealers to only use “recommended lubricants & oils and penalised them in case of violation.

CCI imposes Penalty
CCI imposes Penalty

Competition Commission on Wednesday imposed a penalty of Rs 87 crore on the  Hyundai Motor India for unfair business practices with respect to providing discounts for cars.

Besides, this Hyundai has been further directed to cease and desist from such anti-competitive practices.

In its 44-page order, Regulator expounded that the company’s anti-competitive conduct include putting in place arrangements that resulted in the resale price maintenance by way of monitoring of the maximum permissible discount level.

This was done through discount control and the penalty mechanisms for the non-compliance of discount scheme, the order states.

It was alleged that company has discount control mechanism whereby the dealers are permitted only to provide a maximum permissible discount and not beyond recommended range.

Watchdog has thus slapped a fine of Rs 87 crore on Hyundai.

Penalty amount translates to the 0.3 per cent of company’s average relevant turnover in last three financial years from 2013-14.

Among others, CCI further enunciated that Hyundai contravened the competition law through the arrangements which resulted into the resale price maintenance and by mandating its dealers to use the “recommended lubricants/ oils and penalising them for the use of  the non-recommended lubricants and oils”.

Related News @ LatestLaws.in-

Competition Act,2002

Facebook Comments

Check Also

IPR violations

Pendency of IPR cases: SC asks HC to submit details of No. of Joint Registrar’s recording evidence everyday

December 16,2017: SC wants to treat work done by HC in this regard particularly in the Intellectual Property Rights (IPR) cases as a “yardstick” so that if successful, it can be replicated across India. The Supreme Court, while taking note ...

Leave a Reply

Your email address will not be published. Required fields are marked *