CCI not to take any action against Hyundai

Madras High Court has asked the Competition Commission of India (CCI) not to proceed with any action against Hyundai. Hyundai is among one of the 14 carmakers slapped with a combined penalty of Rs 2,554 crore for failing to sell spare parts in the open market.

Hyundai moved the High Court against the summons issued by the Competition Commission of India (CCI). Upon hearing the submissions made by Hyundai, the Court reversed the Order and directed the Competition Commission of India not to proceed further with the matter till the final order is pronounced by the court.

Hyundai contended before the Court that, Director General of Competition Commission of India did not have the power to initiate investigation and that no materials, facts or figures were produced by Competition Commission of India. Hyundai further questioned the “selective approach” by Competition Commission of India, whose order excluded 12 original equipment manufacturers, including Renault, Jaguar and Volvo.

As reported by the Business Standard, other Original Equipment Manufacturers (OEM), which includes, Maruti, Hyundai, Nissan, Mercedes-Benz, BMW etc. have approached other various courts on the same issue. BMW, Maruti Suzuki India and Mercedes-Benz approached the Delhi High Court against the order. Delhi High Court in turn stayed a Rs 471.14 crore fine imposed on Maruti Suzuki, by the Competition Commission of India. Further, staying the Competition Commission of India’s order against BMW and Mercedes-Benz for three weeks Court asked them to move the Madras High Court, which was already hearing the matter for other OEMs.

Competition Commission of India earlier imposed penalties on Mahindra, Tata Motors, Hyundai Motor India Pvt Ltd, Toyota Kirloskar, Honda, Volkswagen India, Fiat, Ford India, General Motors India, Nissan Motor India, Hindustan Motors, Mercedes-Benz India, Maruti Suzuki, Skoda Auto India and BMW.