The Competition Commission of India (CCI) has taken to task Hyundai Motor India for not conforming to the provisions of Competition Act, 2002, slapping fines worth $66m on the South Korean automaker.
Two other automakers, namely, Mahindra Reva Electric Car Company and Premier were also found guilty of violating the norms.
The commission said in a statement: "After taking into account the findings of the DG and the detailed submissions by these three car companies, the Commission found their conduct to be in violation of the provisions of section 3(4) of the Act with respect to their agreements with local Original Equipment Suppliers (OESs) and agreements with authorized dealers whereby they imposed absolute restrictive covenants and completely foreclosed the aftermarket for supply of spare parts and other diagnostic tools."
"Further, these car companies were also found to be using their dominant position in the market for spare parts and diagnostic tools to protect their market for repair services, thereby distorting fair competition."
The penalty has been imposed only on Hyundai and the rest were absolved from paying any monetary penalty taking in consideration the mitigating factors that worked in favor of Mahindra Reva Electric Car Company and Premier.
The order is in keeping with the main order of the CCI in the same case dated August 25, 2014, in connection with which it had inter alia imposed penalties on 14 out of the 17 car automakers under Section 27 of the Act.
