The Competition Commission has directed a thorough investigation into Tata Motors’ alleged misuse of a dominant role in dealership agreements. Two complaints were filed against Tata Motors, Tata Capital Financial Services Ltd, and Tata Motors Finance Ltd, which resulted in the order (opposite parties). According to the Competition Commission of India (CCI), the complainants are primarily aggrieved that Tata Motors has placed unfair terms and conditions in the dealership agreement for commercial vehicles in violation of Section 4 of the Competition Act by abusing its dominant role.
The opinion that a prima facie case of violation of Sections 3(4) and 4 of the Competition Act has been made out against Tata Motors, and that the matter needs investigation. Before reviewing the issues on their merits, the regulator stated that it is compelled to notice that the informants have issued an omnibus challenge to the various clauses of the agreements and the behavior arising from or antecedent thereto.
“The Commission believes it is fitting to limit the scope of the investigation to the clauses of dealership agreements and conduct to commercial vehicles conducted between dealers and Tata Motors. The CCI made it clear that it was not looking into Tata Capital’s or Tata Motors Finance’s behavior or channel financing arrangements with dealers, as they do not seem to have considerable market influence in the verticals where they operate”, said Sanjay Kumar Pandey, .
Concerning the allegation that the dealership agreement prohibits the dealer from starting, acquiring, or engaging in any new business (of product or service) even though it is unrelated to the automotive industry, CCI stated that the provision appears to be overly stringent and expansive in scope, interfering with trade freedom.
According to Tata Motors, does not aim to place a blanket restriction on the dealer requesting a NOC. The opposing parties have claimed that the current cases disputes are solely contractual and commercial, with no antitrust problems, and that CCI lacks authority to investigate the issues posed by the informants.
The regulator stated that it has no reservation in holding that simply because the disputes presented are contractual and therefore the Commission lacks authority, the same is devoid of any power and is accordingly rejected, nothing in this order constitutes a definitive statement of opinion on the merits of the case, and the DG must conduct the investigation without being influenced in any way by the observations made herein.
The CCI (Competition Commission of India) has approved Tata Digital’s acquisition of up to 64.3 percent of Supermarket Grocery Supplies Private Limited, as well as its sole control over the business that operates Big Basket, Innovative Retail Concepts Private Limited.
“During the first lockdown, the company recruited over 12,300 employees in 16 days to meet the increase in demand when a vast number of people began using digital channels to shop for groceries. Learning cultural elements and handling people are more important than becoming a technocrat and knowing technology since it can be outsourced as long as you know where the company is going”, said Hari Menon, co-founder Big Basket.
