Maruti Suzuki fined Rs. 200 crore over dealer discount policy

The CCI has asked Maruti Suzuki to "cease and desist" from indulging in such practices.

The Competition Commission of India (CCI) has slapped a fine of Rs. 200 crores on Maruti Suzuki for anti-competitive practices.

The CCI has asked Maruti Suzuki to "cease and desist" from indulging in such practices. The carmaker has 60 days to deposit the fine.

Reports of the allegations had first surfaced in 2019. Following a thorough investigation into allegations of forcing dealers to limit discounts, the CCI found that Maruti Suzuki was involved in practices that stifled competition among dealerships. It is said that if dealers had been allowed to operate freely, consumers would have benefited from lower prices.

The CCI also stated that Maruti not only indulged in such activities with its dealers but also imposed penalties on those who didn't abide by its instructions. However, Maruti, in its response stated that it did not impose a discount control policy on dealers and that they were free to offer any discounts they wished to customers.

Source: Reuters