Competition Commission Rejects Complaint Against Hyundai Motor

The Competition Commission today dismissed a complaint of unfair business practices against Hyundai Motor India, saying the concerns raised had already been dealt with in a previous case.

The complaint, filed by Punjab-based Saturn Vehicles, alleged that the company indulged in various anti-competitive practices with respect to sale of passenger cars.

"Since the commission has already dealt with the allegations in respect of certain conducts of the OP (opposite party - Hyundai Motor India), it is not expected to do the same again and again and deal with successive informations filed for the same conduct against the same enterprise by a separate order," CCI said in its order.

Earlier in June, the Commission had imposed a penalty of Rs 87 crore on Hyundai for unfair business practices.

Also Read: CCI's Hyundai Order May Force Manufacturers To Redefine Pricing Policies

In the latest case, it was alleged that Hyundai Motor India has a policy that specifies the maximum discount on each car model which the dealers can give to customers. Dealers are penalised if they give more discounts than the prescribed limit.

For various other allegations, including those pertaining to zero credit policy and inventory funding, the watchdog said that since the issues have no bearing upon competition in the market, it finds no reason to invoke the section 3 of the Competition Act. Section 3 pertains to anti-competitive agreements.