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India: Competition watchdog probes carmaker Maruti

 |  January 12, 2020

India’s antitrust regulator is looking into allegations that Maruti Suzuki pushes buyers to purchase insurance policies offered by the company, two sources with direct knowledge of the matter said.

The Competition Commission of India (CCI) in June last year received an anonymous complaint alleging insurance plans recommended by Maruti while selling cars resulted in customers paying more compared with other options in the market. Based on the complaint, the CCI is assessing whether Maruti has engaged in so-called “tie-in arrangements,” in which a car maker promotes preferred suppliers of complementary goods such as lubricants or insurance, the sources said.

Indian law states such practices are anti-competitive if they end up stifling competition and limiting consumer choices. The Commission is looking into the complaint and “it will take a while,” said one of the two sources, who declined to be named as the case details are private

Full Content: Times of India

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