Saturday, March 4, 2017

No abuse of dominance by manufacturer of Range Rover due to existence of others brands like, Audi, Ferrari, BMW

Facts:

1. Lexus Motors Ltd (Lexus) is authorized dealer of cars manufactured by Jaguar Land Rover India Ltd. for sale and purchase of luxurious cars in the eastern region of India.

2. Informant had purchased one 'Range Rover Evoque Dynamic Car' ('Car') for personal use from Lexus. Soon after the purchase, the informant noticed many problems and defects in the car, such as gear problem, pick up, over heating of the gear nob, etc. After that, the car was sent to the service center of Lexus.

3. Due to the exclusive dealer in the eastern region of India, Informant alleged that the Lexus was abusing their dominance in the market for sale of high - end luxury cars.

The Competition Commission held as under:

a) There are many brands of luxury passenger cars which are available in India including Mercedes Benz, Ferrari, BMW, Audi, Porsche Volvo, Mitsubishi, Aston Martin, Maserati, etc., with a variety of models. The presence of a large number of players indicates that the market is competitive. Further, there are no significant barriers for other players to enter into the relevant market.

b) Thus, the Lexus did not hold a position of strength in the market of sale and purchase of luxurious car in India. [2017] 78 taxmann.com 228 (CCI)
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