Home >Auto News >CCI orders probe on Maruti Suzuki's discounting practices

NEW DELHI : The Competition Commission has ordered a detailed probe against carmaker Maruti Suzuki for alleged resale price maintenance arrangement with dealers.

Generally, resale price maintenance refers to an arrangement between a buyer and seller wherein the resale price is stipulated by the seller.

In a 10-page order, the Competition Commission of India (CCI) said it is of the considered opinion that a thorough and detailed investigation is required to be ordered to ascertain the factual position and modus operandi resorted to Maruti Suzuki India Ltd (MSIL).

The allegations prima-facie reveal a fit case for investigation in respect of the alleged resale price maintenance arrangement put in place by MSIL upon its dealers in contravention of competition norms.

"Agreements restraining competition are generally made in smoke filled rooms and therefore it is difficult to find formal/ written agreements. It is with this objective that the (Competition) Act has stipulated a wider definition of agreement to catch hold of such anti-competitive conduct.

"Therefore, MSIL's submission that there exists no agreement to control discounts, is devoid of substance and merits rejection," the order said.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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