CCI dismisses complaint against JLR India for alleged unfair trade practices

The CCI dismissed a complaint against Jaguar Land Rover India and Lexus Motors for alleged abuse of dominant position and anti-competitive agreements


CCI said that the allegations pertaining to unfair trade practices are not per se covered under the Competition Act. Photo: Mint
CCI said that the allegations pertaining to unfair trade practices are not per se covered under the Competition Act. Photo: Mint

New Delhi: The fair trade regulator on Thursday dismissed a complaint against Tata Motors’ owned luxury car manufacturer, Jaguar Land Rover (JLR) India, and Lexus Motors for alleged abuse of dominant position and anti-competitive agreements.

Rejecting the complaint, the Competition Commission of India (CCI) observed that the case does not require further investigation into the conduct of the parties.

In its 17 January order that was made public on Thursday, the commission found “no prima facie case of contravention of the provisions of section-4 of the Act against the opposite parties (OP) in the instant matter”.

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Section-4 of the Competition Act, 2002 pertains to abuse of dominant position by a party. The order refers to JLR India and Lexus motors as the opposite parties in the case.

Lexus Motors Ltd. is an authorised dealer of Jaguar Land Rover.

The informant had bought a car from a Lexus Motors outlet in Kolkata in 2014 and alleged that the car met with a major accident prior to delivery. The informant in the case is the director of Shyam Steel Industries Limited (SSIL).

It was alleged that facts about the car were “deliberately concealed” by both the OPs, records of the vehicle were manipulated, and a “used, accidental and damaged car” was sold to the informant, the replacement of which has been denied by the OPs.

CCI noted that “the allegations pertaining to unfair trade practices are not per se covered under the Act”. Therefore, the commission has examined the allegations from the perspective of section-4 of the Act. It further noted that the parties are not dominant in the market for sale and manufacturing of luxury cars in India. CCI ordered the matter to be closed finding no case of violation of the Act.

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