The Competition Commission of India (CCI) has penalised Hyundai Motor India with a sum of Rs 420 crore after having found the company guilty of unfair trade practices. The company has been found guilty of indulging in anti-competitive practices which includes not making genuine spare parts freely available in the market.
The fine has been calculated at two per cent of average turnover. Hyundai has to deposit the penalty within 60 days from the receipt of the order to the panel. CCI has also asked the company to cease and desist from such practices.
The competition panel has also found Mahindra Reva and Premiere Ltd guilty of unfair trade practices. CCI found that these two companies also abused their position in the market and violated the completion laws. However, no penalty has been imposed on both these companies.
Earlier in August last year, CCI had imposed a combined penalty of over Rs 2,545 crore on 14 carmakers, excluding Hyundai, for indulging in unfair practices in the spare parts market. At that time, CCI couldn't proceed against these three companies on account of a Madras High Court stay challenging the authority and jurisdiction of the regulator. However, the high court on February 4 confirmed CCI's jurisdiction to look into practices of these three car manufacturers.
CCI has also asked Hyundai, Reva and Premier to cease and desist from such anti-competitive practices and devise a mechanism to make spare parts easily available in the market.
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