Hyundai India has been charged with fine by Competition Commission of India (CCI). The CCI on Wednesday imposed a penalty of Rs. 87 crore on Hyundai India for providing discounts on cars by adopting unfair business practices. The CCI has ordered to cease the company and stopped from following any anti-competitive practice.
While discussing this matter a spokesperson from Hyundai India said, “We are really surprised with this order. We are studying the order in detail and will take the necessary course of action to challenge the order at an appropriate level to protect the interest of our customers and channel partners by abiding with all laws of the land”.
It was claimed that the company was following a discount control mechanism whereas dealers are permitted only to provide a maximum permissible discount and not go beyond the certain recommended range.
Apart from the discount charges, CCI also imposed the provisions of Section 3(4)(a) read with Section 3(1) of the Act for forcing its dealers to use recommended lubricants/oils and penalizing them for use of non-recommended lubricants and oils.