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CCI imposes penalty of Rs 87 crores against Hyundai Motor India Limited for anti-competitive conduct

The Competition Commission of India (CCI) has found Hyundai Motor India Limited (HMIL) to be in contravention of the provisions of the competition Act, 2002 for forging arrangements with its dealers which resulted into Resale Price Maintenance in sale of passenger cars manufactured by it.

Such arrangement also included monitoring of the maximum permissible discount levels through a Discount Control Mechanism.

Further, HMIL was found to have contravened the provisions of the Act for mandating its dealers to use recommended lubricants/ oils and penalizing them for use of non-recommended lubricants and oils.

The final order has been passed on June 14 on information filed by the dealers of HMIL viz. Fx Enterprise Solutions India Pvt. Ltd. and St. Antony’s Cars Pvt. Ltd.

Apart from issuing a cease and desist order against HMIL, CCI has imposed a penalty of Rs. 87 crore upon HMIL for the anti-competitive conduct. The penalty has been levied @ 0.3% of the average relevant turnover of HMIL of preceding three years.

CCI has noted that in its order for the purposes of determining the relevant turnover for the impugned infringement, revenue from sale of motor vehicles alone have been taken into account.

 


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