CCI imposes Rs. 2,544 crore fine on 14 car manufacturers; Hyundai’s jurisdiction challenge pending before Madras HC

The Competition Commission of India (CCI) has imposed a fine totaling Rs. 2,544 crore on fourteen car manufacturers for restricting the sale and supply of genuine spare parts of automobiles in open market..The companies on which penalties have been imposed include Maruti Suzuki India Limited, Mahindra and Mahindra Ltd, Tata Motors Ltd, Toyota Kirloskar Motor Private Limited, Honda Siel Cars India Limited., Volkswagen India Private Ltd., Fiat, Ford Motor India Pvt. Ltd, General Motors, Nissan Motors India Private Ltd., Hindustan Motors, Mercedes-Benz India Private Ltd. and Skoda Auto India Private Ltd..The Informant Shamsher Kataria had complained about anti-competitive trade practices by three companies – Honda, Volkswagen and Fiat. He had alleged that genuine spare parts and the technical know–how required to effectively repair, maintain and service the automobiles were not available to independent workshops but could only be procured through authorised dealers. This, he had averred, had effectively created a monopoly over the supply of such genuine spare parts and repair/maintenance services..It was his case that this practice had indirectly determined the prices of the spare parts and the repair and maintenance services. He had further alleged that such restrictive practices carried out by the automobile manufacturers in conjunction with their respective authorized dealers amounted to denial of market access to independent repair workshops..The CCI upon receiving the information chose to examine all the car manufactures in India totaling seventeen and imposed fine on fourteen of them..Hyundai Motors India Limited, Mahindra Reva Electric Car Company Ltd. and Premier Ltd. have escaped the knife under the present order with the CCI making it clear that it would pass a separate order against these three companies later after giving them an opportunity to present their case. This was due to Hyundai and other two companies challenging the power of the Director General (DG) to order investigation against car manufactures not named in the complaint by the informant and the consequent act of the CCI suo moto conducting enquiry against the manufacturers on the recommendation of the DG..Hyundai had filed a petition in the Madras High Court challenging the jurisdiction of the CCI in the matter. The petition was dismissed by a single judge and is now pending in appeal before a Division Bench. IPN Associates LLP represented Hyundai Motors India with a team led by Managing Partner TM Kumar. .Advocate Sameer Oberoi and Aditya Patni represented the Informant..The following lawyers appeared for the car manufacturers before the CCI:.Opposite PartyCompany Advocates and Law firm1.Honda Siel Cars India Ltd.Advocates S Seetharaman and S Ramanathan2.Volkswagen India Pvt Ltd.Senior Advocate AN Haksar and Advocate R Sudhindar3.Fiat India Automobiles Ltd.Advocate R Narain and Advocate Kanika Gomber4.BMW India Pvt. Ltd.Senior Advocate Ramji Srinivasan and RNC Legal Managing Partner Ravi Nath 5.Ford India Pvt. Ltd.Senior Advocate Ravinder Sethi and SNG Partner Ajay Monga6.General Motors India Pvt. Ltd.Senior Advocate Jaideep Gupta and P&A Associates Partner Anand S Pathak7.Hindustan Motors Ltd.TMT Law Practice Partner Abhishek Malhotra and Associate Unnati Agarwal8.Mahindra & Mahindra Ltd.Senior Advocate Ramji Srinivasan and Khaitan & Co Partner Avantika Kakkar9.Maruti Suzuki India Ltd.Amarchand Mangaldas Senior Partner Pallavi Shroff and Associate Dinoo Muthapa10.Mercedes-Benz India Pvt. Ltd.Senior Advocate Ashwini Mata and Advocate RB Pendse11.Nissan Motor India Pvt Ltd.Senior Advocate Ramji Srinivasan and Seth Dua & Associates Partner Atul Dua12.Skoda Auto India Pvt. Ltd.Senior Advocate AN Haksar and Advocate R Sudhindar13.Tata Motors Ltd.Advocate R Narain and Advocate Kanika Gomber14.Toyota Kirloskar Motor Pvt. Ltd.AZB Partner Samir Gandhi and Advocate Vipin Singhania.Read the full order below.