New Delhi: India Watchdog Fair Play Competition Commission (CCI) has imposed a 200-crore Hospital penalty on car makers for Maruti Suzuki for dealer discounts that control and limit, saying this practice causes “rejection of allowances” to buyers, while lowering the competitive fightback Automotive industry.
CCI, who has taken the case with the basis of Suo Motu in November 2017 after receiving anonymous complaints by the meantially Marruti dealer, said the company must “stop and stop” from indulgence in unfair business practices, while depositing a penalty in 60 days.
Maruti Suzuki said he was checking the order and would take the right action under the law.
“Maruti always works with the best interests of consumers and will continue to do it in the future,” said a company statement.
This problem was originally investigated by the General Director of Investigation in CCI, which has objected to the practice.
“Practice maintenance of resale (RPM) by Maruti Suzuki causes a considerable adverse effect on competition in India.
It decreases competition between brands and intra-brand and causes products that are not offered to consumers at the best prices.
International cases also show That this action causes a considerable adverse effect on competition.
“CCI said Maruti had an agreement where the dealer was controlled from offering additional discounts to customers outside determined by the company.
In other words, the company has discount control policies and dealers who want to offer additional discounts needed to be required to seek previous approval.