CCI finds Hyundai Motors guilty of anti-competitive conduct; slaps Rs 87 cr penalty
Published: Jun 15, 2017
By TIOLCORP News Service
NEW DELHI, JUNE 15, 2017: THE Competition Commission of India (CCI) has found the conduct of Hyundai Motor India Limited (HMIL) to be anti-competitive and in contravention of the provisions of Section 3(4)(e) read with Section 3(1) of the Competition Act, 2002. Accordingly, CCI imposed a penalty amounting to Rs. 87 crore on the automobile major.
The CCI has found the company to be guilty for imposing arrangements upon its dealers which resulted into Resale Price Maintenance in sale of passenger cars manufactured by it. Such arrangements also included monitoring of the maximum permissible discount levels through a Discount Control Mechanism. Further, HMIL was found to have contravened the provisions of Section 3(4)(a) read with Section 3(1) of the Act for mandating its dealers to use recommended lubricants/ oils and penalising them for use of non-recommended lubricants and oils.
The final order was passed yesterday on informations filed by the dealers of HMIL viz . Fx Enterprise Solutions India Pvt. Ltd. and St. Antony's Cars Pvt. Ltd.
Apart from issuing a cease and desist order against HMIL, CCI has imposed a penalty of Rs. 87 crore upon HMIL for the anti-competitive conduct. The penalty has been levied @ 0.3% of the average relevant turnover of HMIL of preceding three years. CCI noted in its order that for the purposes of determining the relevant turnover for the impugned infringement, revenue from sale of motor vehicles alone have been taken into account.
(See 2017-TIOLCORP-22-CCI)