The Competition Commission of India (CCI) has imposed a penalty of Rs 420.26 crore on leading automobile manufacturer Hyundai Motors for unfair trade practices. CCI decided to impose a penalty of 2% of the average annual turnover for three financial years in India.
The decision is being taken by CCI after it found that the company is involved in anti-competitive practices in that the company is not making genuine spare parts which are freely available in the open market.
CCI has asked the company to stop such practices and Hyundai has to deposit the penalty within 60 days.
According to CCI statement, “The car company was found to be indulging in practices resulting in denial of market access to independent repairers as the latter were debilitated to provide services in the aftermarket for repair and maintenance of cars for want of genuine spare parts”.
Along with Hyundai Motors India, 2 other companies – Reva and Premier have also been asked to ‘cease and desist’ from anti-competitive practices. However, no penalty has been imposed on both companies.
CCI is a body of the Government of India responsible for enforcing The Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India.
- It was established on 14 October 2003.
- It became fully functional in May 2009 with Dhanendra Kumar as its first Chairman.
- The Commission comprises a Chairperson and six members.
- Ashok Chawla is the current Chairperson of the CCI.