CCI Exonerates Honda Motorcycle from Abuse Allegations

The Competition Commission of India dismissed a complaint against Honda Motorcycle & Scooter India for alleged dominant position abuse, citing the nature of the issue as contractual, beyond the Competition Act's scope. The individual alleged coercion and biased business dealings, but CCI found no market dominance or anti-competitive conduct.

The Competition Commission of India (CCI) has cleared Honda Motorcycle & Scooter India of accusations concerning the abuse of its dominant market position. The complaint, brought forth by a former Suzuki Motorcycle India dealer in Kerala, suggested coercive tactics and unfair business practices by Honda Motorcycle & Scooter India.

The CCI determined that the matters cited, including termination of a dealership agreement and mandatory stocking of unpopular models, were contractual and commercial disagreements, not suited for evaluation under the Competition Act. According to the CCI's order, such issues fall outside the act's scope.

Further, CCI emphasized that the allegations of market dominance abuse were unsupported. The watchdog concluded that the dealership agreement's termination and related business actions were in line with contractual terms, addressing commercial performance issues rather than any anti-competitive actions on HMSI's part.

(With inputs from agencies.)