Allegations of abuse of dominant position against Toyota Kirloskar Motor Pvt. Ltd., dismissed

Competition Commission of India (CCI): CCI has dismissed allegations of abuse of dominant position against Toyota Kirloskar Motor Pvt. Ltd. in terms of after-sales services while observing that the issue raised in the information pertained to alleged deficiency in services and no case of contravention of the provisions of Section 4 of the Competition Act was made out against Toyota Kirloskar Motor Pvt. Ltd.

The information before the Commission was filed against Toyota Kirloskar Motor Pvt. Ltd. alleging contravention of the provisions of Section 4 of the Act. Section 4 of the Competition Act pertains to abuse of dominant position. It was alleged that Toyota Motors indulged in monopolistic trade practices by selling a car through its dealer in Patna with bad engine performance and also failed to provide proper pre-delivery inspection (PDI). Unavailability of spare parts was also alleged. After hearing the parties, CCI considered “market of sports utility vehicles in India” as the relevant market and observed that as there are other manufacturers with comparable size and resources and there exists choice for the consumers in the relevant market, Toyota does not possess such market power so as to act independently of competitive forces prevailing in the relevant market or to affect its competitors or consumers in its favour. “The dispute in question between the Informant and OP (Toyota Kirloskar Motor Pvt. Ltd.) appears to be purely a consumer issue for which the Informant may approach the appropriate forum,” noted the Commission while dismissing the allegations against Toyota Kirloskar Motors and closed the matter. [Dr. Ravi Bhushan Sharma v. Toyota Kirloskar Motor Pvt. Ltd., 2016 SCC OnLine CCI 75, decided on December 6, 2016]

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