Competition Commission rejects complaint against Toyota

Competition Commission has dismissed allegations that Japanese auto major Toyota abused its dominant position with regard to sale of a car and alleged deficiency in after-sale services.

While observing that the car maker is not a dominant player in the relevant market, the regulator said there are no competition issues involved and that the issue appears to be a consumer dispute.

It was alleged that Toyota indulged in monopolistic trade practices by selling a car through its dealer in Patna with bad engine performance and also failed to provide proper pre-delivery inspection (PDI). It was also alleged that there was unavailability of spare parts.

For this case, Competition Commission of India (CCI) considered "market of sports utility vehicles in India," as the relevant market.

CCI said there are other manufacturers with comparable size and resources and there exists choice for the consumers in the relevant market.

Toyota "does not possess such market power so as to act independently of competitive forces prevailing in the relevant market or to affect its competitors or consumers in its favour," it said in a recent order.

There is no competition issue involved in the matter and the dispute appears to be purely a consumer issue for which the informant may approach the appropriate forum, it added.

Rejecting the complaint, the watchdog said no case of contravention of the provisions of Section 4 of the Competition Act is made out against the company.

Section 4 of the Competition Act pertains to abuse of dominant position.