HC grants 3-weeks protection to BMW India from CCI's order

The Delhi High Court today granted to BMW India three weeks interim protection from Competition Commission of India (CCI) order imposing a penalty of Rs 20.41 crore on the luxury car maker for allegedly violating trade norms in spare parts and after-services market.
Justice Vibhu Bakhru said the order by CCI will not take effect for three weeks by when BMW has to challenge the report of the anti-trust regulator before the Madras High Court which had already issued a "blanket order" on September, 2013 staying the investigation in the matter.
"As far as September, 2013 order is concerned, it's a blanket order. The dispute is not here, so we give them (BMW) three weeks interim protection. They are directed to go to Madras High Court.

"Today, the3 entire case is at Madras High Court, so this court will not interfere in the issue," the judge said.
On August 25, 2014, CCI had fined BMW and 13 other companies Rs 2,554 crore for violating trade norms in the spare parts and after-services market and the same was to be deposited within 60 days.
For each entity, the individual fine amounted to two per cent of their average turnover.

Apart from seeking a stay on the fine, BMW has also challenged CCI's legal proceedings on alleged anti-competitive practice of selling spare parts at higher prices.
It said Maruti Suzuki India Ltd has already got a stay order from the Delhi High Court, so it too should be treated on par with them.

BMW argued CCI had suo motu expanded the scope of investigations into the entire car industry even though it had originally received a complaint against three automobile firms - Honda, Volkswagen and FIAT.
It questioned whether the anti-trust regulator had the powers to expand the scope of investigations on its own even if the complainant had not named a company in the original complaint.