A PYMNTS Company

Competition Commission looks into pricing practices for high technology car keys

By  |  February 6, 2012

The Competition Commission of Mauritius has launched an investigation to determine if distributors of new cars are charging excessive prices for replacement Automatic Electronic Ignition Keys and synchronizing services. The Commission also is looking into whether the distributors are not releasing codes or passwords to car owners. Such practices would constitute a violation of the monopoly provisions in section 4 of the Competition Act 2007.

According to the Executive Director of the Competition Commission, Dr. Sean Ennis, the issue lies with the fact that “there is one main source for a replacement [key]–the car dealer for that brand.” Furthermore, Dr. Ennis also indicated concern with “the access that alternative suppliers have to the aftermarkers for replacement Automatic Electronic Ignition Keys.”

Source: Competition Commission of Mauritius

 

Related content: Practical Aspects of Aftermarkets in European Competition Law (Dr. John Temple Lang, Cleary Gottlieb)