CCI Dismisses Abuse of Dominance Complaint Against Honda Motorcycle
Jan 16, 2025 13:47
The Competition Commission of India (CCI) has dismissed a complaint alleging that Honda Motorcycle & Scooter India abused its dominant position in its dealings with a Kerala-based individual. The CCI concluded that the claims were rooted in contractual disagreements rather than market dominance...
![](https://im.rediff.com/1200-900/money/2019/oct/29cci.jpg)
New Delhi, Jan 16 (PTI) The Competition Commission of India (CCI) has dismissed a complaint alleging that Honda Motorcycle & Scooter India abused its dominant position in its dealings with a Kerala-based individual.
Honda Motorcycle & Scooter India Pvt Ltd (HMSI) is a subsidiary of Japan's Honda Motor Co.
Rejecting the complaint, the competition watchdog stated that the allegations of coercion and unfair practices were related to contractual disputes and commercial matters, which are beyond the scope of the Competition Act.
"...the Commission directs that the matter be closed forthwith under Section 26(2) of the Act," CCI said in an order on Tuesday.
Section 26(2) of the Competition Act pertains to the case closure of a matter if a prima facie case is not made out.
The complaint was filed by the Kerala-based individual, who claimed the company engaged in anti-competitive practices under the Competition norms.
The individual (a former dealer of Suzuki Motorcycle India), alleged that HMSI coerced him into terminating his Suzuki dealership to secure an HMSI dealership in 2017. He further accused HMSI of forcing him to stock unpopular two-wheeler models, denying him business flexibility, and abruptly terminating the dealership agreement in January 2024 without justification.
In its order, the competition watchdog noted that the individual's claims of coercion and unfair practices pertained to contractual disputes and commercial transactions, which do not fall under the purview of the Competition Act.
CCI also pointed out that the allegations were insufficient to establish abuse of dominance under Section 4 of the Act.
With regard to the individual's allegations of dumping of unpopular/offbeat models and unilateral termination of the agreement with the individual, the Commission observes that "these kinds of allegations seem to be related to transactions which are commercial in nature, which ordinarily do not invite attention under the provisions of the Act".
"Purchase and sale of a particular model or a particular make by any authorised agency of a vehicle manufacturer relate to the business-related aspects of the agreement and they themselves do not give rise to any anti-competitive conduct," CCI said.
The regulator also highlighted that the individual voluntarily entered into the dealership agreement with HMSI, which included provisions for termination under specific conditions.
Regarding the allegation of unilateral and arbitrary termination of the dealership by HMSI, CCI observed that the two-wheeler company had issued multiple warnings and notices to the individual regarding the dealership's performance and adherence to quality standards.
These communications, dating back to 2021, included letters of caution, improvement requirements and several warnings. CCI observed the termination was in accordance with the terms of the agreement and related to commercial considerations rather than anti-competitive conduct.
Therefore, the regulator concluded that the claims were rooted in contractual disagreements rather than market dominance or anti-competitive behaviour.
Home »
Market News » CCI Dismisses Abuse of Dominance Complaint Against Honda Motorcycle
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
MORE NEWS
Kolkata Port Leases Land for Eco-Wellness Hub
Syama Prasad Mookerjee Port, Kolkata, will lease 5 acres at Nature Park for an...
HFCL Targets Rs 10,000 Cr Revenue, Eyes...
HFCL, a domestic telecom gear maker, is aiming for Rs 10,000 crore revenue by...
Godrej Properties: Rs 23,450 cr Projects, Land...
Godrej Properties acquired 12 land parcels for Rs 23,450 crore worth projects in...
Reliance, BP Win Gas Migration Dispute: Court...
The Delhi High Court has overturned an arbitration award that held Reliance and BP...
Over 29,500 Drones Registered in India: DGCA Data
India has over 29,500 registered drones, with Delhi leading the count at 4,882. Tamil...
Jaipur Housing Sales Rise 5% in 2024: PropEquity
Housing sales in Jaipur increased by 5% in 2024, reaching 10,695 units. The value of...
India-US TRUST & IMEC: Boosting Economic &...
India and the US have agreed on the TRUST and IMEC frameworks to strengthen economic...
Japan Invests in India: 'China Plus One' Strategy
Japanese companies are shifting their focus to India as part of the 'China Plus One'...
Extend Renewable Energy Transmission Waiver to...
Power producers urge India to extend the waiver on interstate transmission charges for...
India Aims for $2.5 Billion Castor Oil Exports...
India's castor oil exports are on the rise, and sustainable farming practices are...
Read More »