HC grants 3-weeks protection to Mercedes Benz from CCI's order

The Delhi High Court today granted Mercedes Benz India Pvt Ltd three weeks interim protection from Competition Commission of India (CCI) order imposing a penalty of Rs 23.08 crore on the luxury car maker for allegedly violating trade norms in after-services market and spare parts.
"We will pass the same order given in the BMW India case. You (Mercedes) move the Madras High Court," a bench of Justice Vibhu Bakhru said.
On September 22, the court stayed the operation of the order of CCI for three weeks against BMW and had asked the car manufacturing firm to move the Madras High Court which had already issued a "blanket order" on September, 2013 staying the investigation in the matter.

On August 25, 2014, CCI had fined BMW and 13 other companies, including Mercedes-Benz India Pvt Ltd, Rs 2,554 crore for allegedly violating trade norms in the spare parts and after-services market and the same was to be deposited within 60 days.
For each entity, the individual fine amounted to two per cent of their average turnover.
Apart from seeking a stay on the fine, Mercedes has also challenged CCI's legal proceedings on alleged anti-competitive practice of selling spare parts at higher prices.