Hearing in auto parts case almost complete,order in 2 mths:CCI

In Oct 2012, the Commission had issued show-cause notices to 17 car manufacturers following complaints from consumers

Competition Commission has almost completed hearing into a case involving alleged unfair trade practices by 17 carmakers in sale of spare auto parts to the customers, but a final order may take about two months.

These carmakers, which include mostly foreign auto companies, are being probed by the Competition Commission of India (CCI) for sale of spare parts exclusively through their authorised dealers, and in the process for allegedly forcing their customers to pay a higher price.

"In the carmakers case, hearings are almost complete. We should be able to decide that in the next two months," CCI Chairman Ashok Chawla told PTI.

In October 2012, the Commission had issued show-cause notices to these car manufacturers following complaints from consumers.

The case is being pursued under Section 4 of the Competition Act, which relates to abuse of dominant position by enterprises.

CCI has the mandate to keep a tab on anti-competitive practices in the market place. Once it finds prima facie evidence of violation of competition norms, then those cases are referred to the investigation arm, Director General, for a detailed probe.

Earlier this year, the government had informed the Parliament that the CCI is looking into information received against certain car manufacturing companies for alleged anti-competitive practices.