Allegations of unfair trade practices against automobile company Maruti Suzuki India Ltd., dismissed

Competition Commission of India (CCI): CCI has rejected allegations of “unfair trade practices” against automobile company Maruti Suzuki India Ltd. on the ground that prima facie, no case of contravention of the provisions of either Section 3 or Section 4 of the Competition Act, 2002 was made out against the Company. CCI was hearing an information filed by a GPS devices manufacturer, Rooster Info Pvt Ltd. who alleged that Maruti Suzuki India Ltd. had used its dominant position in the Indian market to coerce buyers of its vehicles to install GPS units manufactured by only two specific companies. It was also alleged that Maruti Suzuki India Ltd. had refused to provide the load to vehicles which did not have GPS from the two companies. After perusal of the documents and hearing both the parties, CIC observed, “The percentage of GPS device used by opposite party (Maruti Suzuki India Ltd.) is only 1.52 per cent. Even if there is such an arrangement between opposite party and Trimble/ Efcon, the anti-competitive impact is negligible.” CCI further noted that as Maruti Suzuki does not appear to be in a dominant position in the relevant market, its conduct cannot be examined under the provisions of Section 4 of the Act. While observing that there was no prima facie evidence of violations by Maruti Suzuki India Ltd, the Commission closed the matter. (Rooster Info Pvt Ltd. v. Maruti Suzuki India Ltd., (2015) CCI 9, decided on May 28, 2015)

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