Competition Commission of India (CCI) has given a clean chit to Hero MotoCorp, noting that there exists no prima facie case against the two-wheeler major of any contravention of provision of the Competition Law.
The competition watchdog has rejected the contention of Balaji Enterprises (non-exclusive distributor of parts) of Mahabubnagar in Telangana that Hero MotoCorp was abusing its dominant position and imposing unfair conditions like capping procedure on the partnership firm and this was giving advantage to four other firms who were basically wholesalers.
It was also alleged that Hero MotoCorp’s trade discounting policy was unfair and that the company was extending larger discounts to these four firms to the disadvantage of Balaji Enterprises.
In its seven page order issued on Thursday, the CCI ruled that no competition concerns seem to arise in the present matter given the nature of allegations and the alleged conduct of the parties so arrayed by the informant (Balaji Enterprises).
However, CCI noted that as per the operational guidelines available on record, discounts suggested by Hero MotoCorp are in the nature of minimum discounts for entities in the vertical chain of business.