CCI dismisses charges of market abuse against Volkswagen

The Competition Commission of India has dismissed charges of anti-market practices against Volkswagen...

By: | Updated: March 21, 2016 12:47 PM

The Competition Commission of India has dismissed charges of anti-market practices against Volkswagen Group Sales India (VG) — a subsidiary of Germany-based Volkswagen AG — which manufactures and sells cars in India.

The charge of abusing its dominant position was leveled by one of dealers, Bhasin Motors, but the CCI dismissed it since the company is not a dominant player in the market.

“The Commission is of opinion that the issues arising out of and related to the dealership agreement between the Informant (Bhasin Motors) and OP (Volkswagen Group Sales) such as unilateral terms and conditions, Bank Guarantee, high penal interest... do not disclose any competition concern”, the CCI order said.

“It appears that OP (Volkswagen) has a very negligible share in the passenger car segment in India which is dominated by a number of players”, the CCI said in its order.

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