Antitrust body CCI orders probe of Maruti Suzuki's discounting practices

Practice setting limits on discounts offered by car dealers is illegal, says Indian law.

India's antitrust body on Thursday said it had ordered an investigation into how Maruti Suzuki, the country's biggest car maker, controlled discounts its dealers could offer.

Car makers at times set a limit on discounts to ensure there is no price war among dealers but law says the practice, described as "resale price maintenance", is prohibited if it causes "appreciable adverse effect on competition in India", reported news agency Reuters.

The Competition Commission of India (CCI), in a 10-page order, said an investigation of Maruti’s arrangement with its dealers was justified, news agency PTI reported.

"Agreements restraining competition are generally