5 October 2021
In an order published on 23 August 2021, the CCI has imposed a penalty on Maruti Suzuki to the tune of INR 2,000,000,000 (Indian Rupees two billion) for restricting and controlling the discounts offered by its dealers to the end consumers.
The CCI has taken the suo motu action based on an anonymous email and has observed that the discount control policy of Maruti Suzuki is an agreement amongst enterprises engaged at different stages or levels of production chain in different markets which puts a restriction on resale price. Such an agreement is anti-competitive in nature and is strictly prohibited under the provisions of Competition Act, 2002.
The CCI rejected contentions of Maruti Suzuki in relation to absence of a formal agreement for implementation of the discount control policy of Maruti Suzuki and that such discount control policy is a measure by the dealers to police themselves and Maruti Suzuki is merely a third party.
The CCI concluded that the conduct of Maruti Suzuki has caused an appreciable adverse effect on competition. Therefore, in addition to the imposition of penalty, the CCI further ordered Maruti Suzuki to cease and desist from indulging in such anti-competitive practice.
Please click here to read the CCI Order.
