On 23 August 2021, the Competition Commission of India (CCI) found Maruti Suzuki India Limited (MSIL) liable for adversely impacting competition in the passenger vehicles [1] segment. The finding marks the conclusion of a two-year-long antitrust probe into MSIL’s implementation of a “discount control policy” (DCP), across its dealerships. The CCI found these DCPs to be restricting the ability of dealers from offering discounts to customers, beyond what is prescribed by a manufacturer. These policies often take the form of “resale price maintenance” (RPM), an agreement that prohibits distributors from re-selling a manufacturers’ product/service, below a certain price. In terms of the Indian Competition Act, 2002 (Act), RPMs may contravene Section 3(4) if the CCI finds them to cause an
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The Indian Competition Authority fines a leading automobile manufacturer €26 million for its discount control policies (Maruti Suzuki India)
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