Honda Scooters to Face CCI Probe Over ‘Unfair’ Practices

Honda Scooters to Face CCI Probe Over ‘Unfair’ Practices

New Delhi: Fair trade regulator CCI on Wednesday ordered an investigation against Honda Motorcycle and Scooter India (HMSI) for various anti-competitive provisions in its agreement with dealers.

It was alleged that HMSI had perpetuated tie-in arrangements, imposed resale price maintenance and maintained a discount control mechanism through the standard form of dealership agreement.

After finding primafacie evidence of competition norm violations, the watchdog has decided to carry out a detailed probe against the company.

The Competition Commission of India (CCI) noted that prima -facie a case of contravention of Section 3 and 4 of the Competition Act is made out against the company.

Section 3 and Section 4 pertains to anticompetitive agreements and abuse of dominant market position, respectively. The CCI decision for a detailed probe has come on a complaint by an Aurangabad-based auto rickshaw dealer of HMSI.