Honda scooters to face CCI probe over ‘unfair’ practices

NEW DELHI: Fair trade regulator CCI on Wednesday ordered an investigation against Honda Motorcycle and Scooter India (HMSI) for various anti-competitive provisions in its agreement with dealers.

It was alleged that HMSI had perpetuated tie-in arrangements, imposed resale price maintenance and maintained a discount control mechanism through the standard form of dealership agreement.

After finding prima-facie evidence of competition norm violations, the watchdog has decided to carry out a detailed probe against the company. The Competition Commission of India (CCI) noted that prima -facie a case of contravention of Section 3 and 4 of the Competition Act is made out against the company.