Competition Laws
In the Case of Shamsher Kataria Vs Honda Siel Cars India Limited the Competition Commission of India has slapped a penalty of 420 Crores on Hyundai for restricting supply of genuine spare parts in the open market as it limits the independent repairers and other multi brand service providers in effectively competiting with authorized dealers of automobile manufacturers in spare parts market and therefore it is an abuse of the dominant position . The Commission regarded two separate market (i) passenger car sale market and (ii) After sale market and dismissed the OEMs plea that there is a unified systems market and sale of cars and spare parts should be considered together . Abuse of dominance concluded because each OEM imposed restriction on their Original Equipment suppliers and overseas suppliers from supplying genuine spare parts directly to the independent repairers