Competition Commission of India, CCI has imposed a penalty of Rs. 200 crore upon Maruti Suzuki India Limited, MSIL for restricting discounts by dealers.
The CCI passed the order against the company for indulging in anti-competitive conduct of Resale Price Maintenance in passenger vehicle segment by implementing discount control policy.
According to the Ministry of Corporate Affairs in a statement said that the CCI has found that MSIL had an agreement with its dealers whereby the dealers were restrained from offering discounts to the customers beyond those prescribed by this company.
MSIL had a ‘Discount Control Policy’ in place for its dealers whereby the dealers were discouraged from giving extra discounts and freebies to the consumers beyond what were permitted.
If a dealer wanted to offer additional discounts, prior approval of MSIL was mandatory and any dealer found violating it, was threatened with imposition of penalty.
The CCI found that such conduct of MSIL which resulted in appreciable adverse effect on competition within India is in contravention of the provisions of the Competition Act, 2002.