New Delhi, Sept. 19 (PTI): The Competition Commission of India (CCI) has sent notices to 17 car makers on an alleged anti-competitive practice of selling spare parts at higher prices to consumers. It is likely to schedule the hearings for next month to seek explanations.
The commission has sent out showcause notices to 17 car makers, many of them foreign entities, regarding allegations of providing spare parts to customers at higher prices, which is against healthy competition, said a source close to the development.
The director-general of the commission has submitted an investigation report, following which the notices have been served, the source said, adding that the hearings are likely to take place next month.
However, names were not disclosed.
The CCI will take a final decision on the alleged anti-competitive practice after taking into account the explanations of the car makers as well as the report of the director-general. The director-general acts as the investigating arm of the fair-trade regulator.
The CCI is pursuing the case under section 4 of the competition act that relates to abuse of dominant position by enterprises.
The probe was conducted after a complaint was filed with the CCI last year against certain car makers for allegedly abusing their dominant market position by selling spare auto parts to customers at high prices.
Going by the complaint, the car makers were making available spare parts only through their authorised dealers, who in turn sold them at higher prices.
In August, the government had said the CCI was investigating allegations of anti-competitive practices by a section of car makers.
In a written reply to the Lok Sabha, minister of state for corporate affairs R.P.N. Singh had said the CCI had received certain information against some car makers.
“The CCI, which is a quasi-judicial body, is getting the matter investigated for appropriate action in the matter according to the provisions of the Competition Act, 2002,” the minister had said.
Generally, the CCI refers complaints related to anti-competitive practices for further investigation by its director-general before taking any action.