Monday, January 23, 2017

CCI imposed Rs. 135 crore penalty on Toyota, Nissan and Ford for restricting sale of spare parts

Facts:

i. The informant alleged that genuine spare parts, diagnostic tools, software and technological information were not made available by the car manufacturers (i.e., Toyota, Nissan and Ford) to independent repair workshops (those which were not among authorized service centers of the car manufacturer).

The CCI held as under:

a. Toyota, Ford and Nissan were abusing their dominant position by imposing unfair conditions in nature of restrictions on purchase or sale of spare parts to independent automobile service providers.

b. Further, car manufactures were to be directed to remove all restrictions imposed on original equipment suppliers. Accordingly, CCI imposed Rs. 135 crore penalty for restrictive trade practices. [2017] 77 taxmann.com 88 (CAT)
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