India: Honda faces CCI probe over unfair trade practices

Fair trade regulator the Competition Commission of India (CCI) ordered on March 15, 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 prima-facie evidence of competition norm violations, the watchdog has decided to carry out a detailed probe against the company.

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

Full Content: Economic Times

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