Fri. Sep 25th, 2020

Allegations of unfair trade practices against automobile company Maruti Suzuki India Ltd., dismissed

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Competition Commission of India (CCI): CCI
has rejected allegations of “unfair trade practices” against
automobile company Maruti Suzuki India Ltd. on the ground that prima facie, no case of
contravention of the provisions of either Section 3 or Section 4 of the
Competition Act, 2002 was made out against the Company. CCI was hearing an
information filed by a GPS devices manufacturer, Rooster Info Pvt Ltd. who
alleged that Maruti Suzuki India Ltd. had used its dominant position in the
Indian market to coerce buyers of its vehicles to install GPS units
manufactured by only two specific companies. It was also alleged that Maruti
Suzuki India Ltd. had refused to provide the load to vehicles which did not
have GPS from the two companies. After perusal of the documents and hearing
both the parties, CIC observed, “The percentage of GPS device used by opposite
party (Maruti Suzuki India Ltd.) is only 1.52 per cent. Even if there is such
an arrangement between opposite party and Trimble/ Efcon, the anti-competitive
impact is negligible.” CCI further noted that as Maruti Suzuki does not appear
to be in a dominant position in the relevant market, its conduct cannot be
examined under the provisions of Section 4 of the Act. While observing that
there was no prima facie evidence of violations by Maruti Suzuki India Ltd, the
Commission closed the matter. (Rooster Info Pvt Ltd. v. Maruti Suzuki India Ltd., (2015) CCI 9, decided
on May 28, 2015)
Source: Legal news India

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