Competition Commission fines Hyundai for unfair practices

The Competition Commission of India has slapped a fine of Rs. 87 crore on Hyundai Motor India for indulging in unfair business practices. The company has also been asked to cease all such anti-competitive practices from immediate effect.

According to the regulatory body, Hyundai has put in place a discount control mechanism, under which, dealers are permitted only to provide discount up to a pre-decided permissible limit. Through such practices, the company is trying to maintain resale prices of its cars. The automaker is also reportedly penalizing dealerships that aren't adhering to the aforementioned discount control mechanism.

The Competition Commission of India has termed this as an anti-competitive practice. The said penalty amount of Rs. 87 crore is equivalent to 0.3% of the company's relevant average turnover in the last three fiscal years, starting from 2013-14.

Hyundai India has expressed its surprise at the penalty and has claimed that its concerned officials are studying the regulatory order in detail and will take necessary steps to challenge it at an appropriate level.

Source: ACI and TOI