The Competition Commission of India, CCI has imposed a penalty of around Rs 2,545 crore on 14 car companies for unfair business practices in the spare parts market. The companies include Maruti, Ford, Tata Motors, Nissan, Hindustan Motors, BMW and Mercedes-Benz. The action came following the Commission's investigation on a complaint regarding anti-competitive conduct of car companies by not allowing the spare parts and after sale services market to grow to the detriment of consumers and independent repairers. The penalty is to be deposited within 60 days of receipt of the order.
During the investigation, the CCI found that the conduct of the car companies was in violation of the provisions of Competition Act. It directed the companies to cease and desist from indulging in conduct which has been found to be in contravention of the provisions of the Act. The companies were also directed to adopt appropriate policies which will allow them to put in place an effective system to make the spare parts and diagnostic tools easily available in the open market to customers and independent repairers. Further, the Commission directed the car companies not to put any restrictions or impediments on the operation of independent repairers.