CCI Dismisses Complaint against Eicher Polaris Private Limited

On May 11, 2020, the CCI dismissed a complaint alleging contravention of Sections 3 and 4 of the Act, against Eicher Polaris Private Limited, New Delhi (‘EPPL’), Eicher Motors Limited, New Delhi (‘Eicher Motors’), and Polaris Industries Inc. (‘Polaris’), filed by Multix Owners and Users Welfare Society (‘Informant’). The Informant is a social organisation registered for the purpose of redressal of grievances of Multix vehicle owners before various authorities, executive and judicial bodies. Eicher Motors is engaged in the business of manufacture, sale, distribution, and servicing of passenger motor vehicles. Polaris is engaged in the manufacture of motorcycles, snowmobiles, etc. EPPL is a joint venture between Eicher Motors and Polaris. However, in 2018, EPPL was closed down due to poor sales performance[1].

The Informant alleged that despite assurance, Eicher Motors failed to provide spare parts and service support for the fleet of Multix vehicles on the road subsequent to the closure of EPPL. Consequently, per the Informant, Multix vehicles have been condemned to garages due to lack of genuine spare parts, and inadequate repair services. The Informant alleged that by restricting supply of spare parts, Eicher Motors and Polaris had created a monopoly over the supply of such parts, indirectly determining the prices of the spare parts and maintenance services.

The CCI noted that the Informant had failed to present any evidence or material to substantiate its allegations. Further, the CCI noted that EPPL had closed its business operations due to insufficient demand and an unviable business proposition. Accordingly, owing to the abovementioned circumstances and the absence of any material to support the allegations of the Informant, the CCI refused to interfere with the matter and dismissed the complaint.

[1] Multix Owners and Users Welfare Society v. Eicher Polaris Private Limited & Ors. Case No. 05 of 2020, order delivered on 11 May 2020.

Published In:Inter Alia Special Edition - Competition Law - June 2020 [ English
Date: June 10, 2020