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India: Ford, Nissan, Toyota penalised for unfair trade practices in spare parts

 |  December 11, 2016

The competition appellate tribunal Compat on Friday disposed appeals of Ford, Nissan, Toyota Kirloskar, and found them to be guilty of indulging in unfair practices in the spare parts market.

While pronouncing its oral order, Compat said these automakers have been penalised 2% of their turnover in the spare parts market. And what’s more, the Compat has also given directions to create a level playing field in after sales service.

For instance, Compat in its oral order has directed the three automakers to remove all restriction on supply of spare parts, ensure no restrictions on independent repairers, and also provide MRPs on spare parts on company websites. Besides these measures, the Compat wants the Ministry of Road & Transport to ensure standardisation of auto parts.

Advocate Vaibhav Gaggar appeared for the competition watchdog CCI and says, “The judgement should go a long way in bringing about transparency, accessibility and fairness in the auto mobile spare parts sector. This in turn would provide greater competition in the market and significantly promote the interests of consumers.”

The CCI in 2014 had found 14 automakers including Maruti Suzuki, M&M and Tata Motors guilty of anti-competitive practices in the spare parts market and had penalised them Rs 2,545 cr. Nissan, Ford, Toyota Kirloskar had appealed against that at the Compat, while other auto companies chose to appeal at the High Court.

Full Content: Economic Times

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