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CCI plans action against car makers

The Competition Commission may soon send notices to as many as 17 carmakers, seeking their explanations on an alleged anti-competitive practice of selling spare parts to consumers at high prices.

The Director General of Competition Commission of India (CCI) has submitted a report after its investigation into the matter and the fair-trade regulator would serve show-cause notices to the carmakers after analysing findings of the probe, sources familiar with the development said.

CCI would take a final decision on this alleged anti-competitive practice after taking into account the replies submitted by the carmakers, along with the probe report of its Director General, which serves as its investigating arm.

Sources said that the notices could be served to 17 car markers but did not disclose the names. The Commission 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 carmakers for allegedly abusing their dominant market position by selling spare auto parts to customers at high prices. As per the complaint, the carmakers were accused of abusing their position by making available spare parts only through their authorised dealers, who in turn sell them on high rates.
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