HC relief to Mercedes-Benz from CCI order

The Delhi High Court Wednesday granted three weeks' protection to Mercedes-Benz India Pvt. Ltd. from the Competition Commission of India's (CCI) order imposing a penalty of Rs.23.08 crore on the luxury car maker for allegedly violating trade norms in spare parts and after-services market.

Justice Vibhu Bakhru said CCI's order will not take effect for three weeks by when BMW has to challenge the report of the anti-trust regulator before the Madras High Court which had already issued a "blanket order" in September 2013 staying the investigation in the matter.

Earlier this month, the high court had also stayed the CCI order levying a penalty of Rs.471 crore on Maruti Suzuki for abusing its dominant position in the spare parts market and charging a steep markup.

The fair trade watchdog had last month slapped a penalty of Rs.2,545 crore against 14 car manufacturers, including Maruti Suzuki, Honda Siel Cars India, Volkswagen India, Fiat India Automobiles, BMW India, Ford India, General Motors India, Hindustan Motors, Mahindra and Mahindra, Mercedes-Benz India, Nissan Motor India, Skoda Auto India, Tata Motors and Toyota Kirloskar Motor.

Each car maker was penalized two per cent of their average yearly turnover. It had also directed the car maker to "cease and desist from the present anti-competitive conduct."