MSIL fined ?2 Billion for Malpractices in Resale Price Maintenance.

Shishir Venugopal

Maruti Suzuki has been rated as the ninth most valuable brand in the world, and is India's largest passenger car company, accounting for over 50 per cent of the domestic car market. On the 23rd of August however, was a different day for MSIL. It was fined approximately $27 Million in penalties over anti-competitive practices.

MSIL forced it dealers to limit discounts stifling competition between them thereby harming consumers from benefitting from better pricing. The CCI – The Competition Commission of India ordered Maruti to ‘cease and desist’ in indulging in such practices and have set the limit to deposit the ?200 crore to within 60 days.

‘Resale price maintenance’ is unlawful in India, and as such it is prohibited if it adversely impacts competition. It was made evident that the Discount Control Policy was controlled by MSIL and not its dealers from e-mails exchanged between the two. The investigation had had begun in 2019.

Image source: Maruti Suzuki