CCI dismisses complaint against Suzuki Motorcycle

New Delhi, 16/08/2012: New cars lined up at the Maruti Suzuki plant in Manesar, Haryana on 17, August, 2012. In a move likely to evoke strong labour reactions, countrys leading car maker, Maruti Suzuki India on Thursday announced termination of services of 500 regular workers and resumption of normal operations from August 21 at its violence hit plant at Manesar, Haryana. Photo: S_Subramanium

Fair trade regulator CCI has rejected charges that Suzuki Motorcycle India abused its dominant position in the market for manufacturing and sale of two-wheeler vehicles.

A complaint filed by an individual had alleged that Suzuki was imposing unfair and discriminatory conditions in the sale of its two-wheeler ACCESS 125cc.

In a recent order, the Competition Commission of India (CCI) said that “no prima facie case of contravention of the provisions of...the (Competition) Act is made out against the opposite party (Suzuki Motorcycle) in the instant matter.

“Accordingly, the matter is closed under the provisions of...the Act”.

Observing that there were many players operating in the two-wheeler market in India, CCI said: “In view of such market construct and structure, prima facie it does not appear that the opposite party enjoys the dominant position in the relevant market.”

The complainant alleged that Suzuki was misusing its dominant position to deprive poor garage owners from their due share in the market.

It was submitted that a customer is not entitled to avail free services of the two-wheeler maker in case he visits a local auto garage for paid services.