Big Blow to Maruti Suzuki: CCI Imposed a Fine of Rs 200 Crore
The Competition Commission of India (CCI) has taken major steps against South Africa's largest carmaker Maruti Suzuki India. Maruti Suzuki has been fined $ 200 million for anti-competitive practices. Also, Maruti Suzuki India has been accused of preventing retailers from offering additional discounts to customers. However, the CCI has taken this step after investigating the matter.
The fine must be paid within 60 days
The CCI has issued an order based on the investigation. In this case, the CCI instructed Maruti to stop such activities and stop engaging in them. For this, the company was also asked to file a fine within 60 days.
The company used to stop vendors from offering many discounts
According to a report by the Competition Commission of India, Maruti Suzuki has been accused of forcing its retailers to reduce their discounts. Also, vendors are not allowed to offer additional discounts to customers.
If the seller offers an additional discount then he is fined. This is called the MSIL Discount Management Policy. MSIL had issued this policy to establish a sales company. However, the allegations have been substantiated in the investigation.
The complaint was received by CCI by email in 2017
The Commission identified the matter on the basis of an anonymous email received by the CCI in 2017. This email was sent by the seller of Maruti Suzuki India Limited. The company alleged that the marketing policy of Maruti Suzuki India was in conflict with consumer interests and the provisions of the Competition Act, 2002.
The retailer suspected that Maruti Suzuki retailers in the West-II region (Maharashtra district outside Mumbai and Goa) were not allowed to offer discounts in excess of the threshold specified in the company's customer service announced.
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