The Indian Competition Authority fines a leading automobile manufacturer €26 million for its discount control policies in only the second case in a decade finding RPM practices anticompetitive (Maruti Suzuki India)

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

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Authors

  • Khaitan (New Delhi)
  • Khaitan (New Delhi)

Quotation

Rahul Singh, Alisha Mehra, The Indian Competition Authority fines a leading automobile manufacturer €26 million for its discount control policies in only the second case in a decade finding RPM practices anticompetitive (Maruti Suzuki India), 23 August 2021, e-Competitions September 2021, Art. N° 102117

Visites 550

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues