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India: Court tosses Nissan, Hyundai fight against CCI

 |  July 8, 2014

A high court in India announced Tuesday that it has dismissed petitions against the Competition Commission of India filed by the Indian units of Nissan Motors and Hyundai Motor in efforts to fight a competition probe into the auto industry.

Reports say the Madras High Court dismissed the petitions against the CCI, denying claims by the car companies that the regulator is unfairly investigating the firms and that it did not offer the companies adequate opportunity for oral hearings regarding the matter.

The CCI opened an investigation into several car manufacturers following a complaint issued in 2011 accusing Fiat, Honda Siel and Volkswagen of dominance abuse and other anticompetitive behavior. After a preliminary investigation, the CCI decided to investigate all industry players on suspicion that anticompetitive practices could be used throughout the market.

Specifically, the authority probed dealership launches, spare part sales and after sales services, among other areas of the industry.

In its petition, Nissan argued that it had only launched operations just six months prior to the 2011 complaint and had only a small fraction of the market share between 2010 and 2011, at .52 percent.

The CCI is investigating 17 auto makers as part of the case.

The Madras High Court said Nissan and Hyundai could appeal to the Competition Appellate Tribunal.

Full content: Business Standard

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