The Competition Commission of India (CCI) has slapped South Korean carmaker Hyundai with Rs 87 crore fine for unfair trade practice. Discount provided by Hyundai India was the reason cited.
The Competition Commission has asked Hyundai to stop offering discounts and avoid such anti-competitive practices with immediate effect. The regulator said that Hyundai India's anti-competitive practice includes arrangements that resulted in resale price maintenance by way of monitoring of maximum permissible discount level.
The CCI stated: "Such conduct pertains to and emanates out of the sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from the sale of motor vehicles alone has to be taken into account."
The fine amount of Rs 87 crore translates to 0.3 percent of Hyundai India's average relevant turnover in the last three financial years from 2013-14. CCI said that the company offended the competition law by asking its dealers to use "recommended lubricants/ oils and penalising them for the use of non-recommended lubricants and oils."
Competition Commission of India is a statutory body of the Government of India responsible for enforcing The Competition Act. The watchdog is doing a fair job by keeping an eye open for unfair trade practices.