CCI imposes Rs. 420 crore fine on Hyundai for anti-competitive practices
The Competition Commission of India (CCI) has imposed fine of 420 crore rupees on the local unit of Hyundai Motor Co.
The fined was imposed after CCI investigation had found that Hyundai was engaged in anti-competitive practices. The fine imposed on Hyundai is 2 per cent of its annual turnover in India in past 2 year viz. 2009-10, 2010-11 and 2011-12.
CCI also had found other carmakers like Mahindra Reva Electric Car Company and Premier Ltd in violation of competitive practices but did not impose fine on them.
The CCI has notified Hyundai to deposit the penalty within 60 days from the order date and has warned these 3 carmakers to take corrective measures.
Anti-competitive practices: CCI in its investigation had found that Hyundai, Reva and Premier were restricting access to diagnostic tools and genuine spare parts in the market which distorted fair competition. This act had resulted in repairing and servicing of cars of these companies more expensive for consumers.
About Competition Commission of India (CCI)
- CCI quasi-judicial statutory body whose predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission).
- It was established 2003 as per the provisions of The Competition Act, 2002 and became fully functional only by 2009.
- It was established with an aim to eliminate anti-competitive practices that adversely affect competition in different industries/areas and protect interests of consumers and ensure freedom of trade and also to give opinions to statutory authorities.
Month: Current Affairs - July, 2015