1. CCI finds no prima facie case against 18 auto firms over dealer selection

CCI finds no prima facie case against 18 auto firms over dealer selection

Competition Commission of India has found no prima facie case of contravention of fair trade and abuse of dominant position against 18 auto manufactures...

By: | Chennai | Published: July 30, 2015 3:34 AM

The Competition Commission of India has found no prima facie case of contravention of fair trade and abuse of dominant position against 18 auto manufactures — including Mahindra & Mahindra, Tata Motors, Hyundai, Ford, TVS Motor and Ashok Leyland — in appointing authorised dealers to sell vehicles. Disposing of an information filed by Puducherry-based K Rajarajan, CCI said the commission was of the view that practices like non-compete clauses, maintenance of minimum stock in showroom and incurring expenditure in promotion of sales, are standard practices being followed by automobile manufacturers and do not by themselves appear to be contrary to provisions of Section 3 of the Act.

(The informant) alleged that restrictive trade practices of automobile makers were having an adverse effect on competition.

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