Allegations against Mercedes Benz India Pvt. Ltd. for alleged abuse of dominant position, dismissed

Competition Commission of India (CCI): CCI has dismissed allegations of abuse of dominant position against German luxury car manufacturer Mercedes Benz India Pvt. Ltd. Earlier, an information was filed by Shree Hari Inn Pvt. Ltd. alleging that an authorised service centre of Mercedes in Gujarat was resorting to malpractices with regard to sale of non-genuine spare parts of two buses purchased by the informant and of charging more than the maximum retail price.

After perusal of material on record and hearing both the parties, CCI observed that there was no case made out against Mercedes for contravention of the provisions of Section 4 of the Competition Act, 2002 which pertains to abuse of dominant position by a party as, “…..the Informant is essentially aggrieved of the alleged malpractices (sale of non-genuine parts, charging of higher prices than MRP etc.) resorted to by the authorised service centre of OP (Mercedes Benz India Pvt. Ltd.). Further, the Informant is aggrieved due to lack of proper after sales service network, delay in availability of spare parts and high prices charged by authorised service centres for spare parts with respect to Mercedes Benz buses that were purchased by the Informant. The Commission is of the opinion that such allegations do not reveal any competition issue.” While concluding the order, CCI ordered closure of information in terms of the provisions contained in Section 26(2) of the Competition Act, 2002. [Shree Hari Inn Pvt. Ltd. v. Mercedes Benz India Pvt. Ltd., 2016 SCC OnLine CCI 74, decided on December 13, 2016]

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