Toyota Kirloskar Motor Pvt Ltd Vs CCI

Whether each original equipment manufacturer having a 100% share of the aftermarket for each of its model, qualifies as a dominant entity - YES: COMPAT

Whether OEM becomes a sole supplier in the aftermarket for supply of spare parts and diagnostic tools for its own brand of automobiles when there are restrictions on original equipment suppliers (OES') and authorized dealers in releasing auto spare parts freely and the authorized dealers can source their parts only from the OEMs - YES: COMPAT

Whether the practice not allowing a large number of OESs to sell spare parts directly in the aftermarket including to independent repairers who are important potential competitors to authorized dealers, amounts to restrictive practices and the impact of restriction is appreciable - YES:

Whether the OEMs charge abnormally high prices for auto spare parts when there is a phenomenal difference between sourcing cost and selling price - YES: COMPAT

Whether the OEMs indulge in leveraging their position in automobile market to protect their position in the secondary market i.e., auto spare parts and servicing even when they operate in the secondary market not by themselves but through their associates i.e. the authorized dealers - YES: COMPAT

Whether restrictions imposed on authorized centers not to sell spare parts to independent repairers can be justified on the ground that there is no regulatory environment in the aftermarket to curb sales of counterfeit spare parts - NO: COMPAT

Whether one of the important ways, to regulate the supply of counterfeit product, would be to release in the aftermarket, genuine products at reasonable price - YES: COMPAT

Whether on the one side high price of these spare parts and on the other restraints on their supply in the open market contribute to the abundance of counterfeit parts - YES: COMPAT

Whether restrictions imposed by the OEMs on the authorized dealers for the purpose of protecting intellectual property rights in the spare parts are unreasonable when the same can be achieved through contractual means and common law remedies- YES: COMPAT

- Order u/s 27: COMPETITION APPELLATE TRIBUNAL