Competition Appellate Tribunal (COMPAT) has sent notices to Italian supercar maker, Lamborghini, after a petition was received from Exclusive Motors claiming market abuse. Notice has been sent by COMPAT to India’s fair trade regulator, Competition Commission of India (CCI), as well who rejected Exclusive Motor’s allegations against Lamborghini regarding the case last year. COMPAT has ordered Lamborghini to file a response by 21st of March 2013.
Exclusive Motors had filed a complaint against Lamborghini last year for abuse of dominant market position. Lamborghini made a dealership agreement and appointed Excusive Motors an importer and dealer for their cars in India in 2005. Later in 2011, Volkswagen Group Sales was appointed by the parent company Volkswagen Group as the importer for Lamborghini cars in India. They requested Exclusive Motors to terminate the current dealership agreement and make a new one.
The new agreement forced Exclusive Motors to pay a higher deposit as well as reduced notice period for dealership termination from 1 year to 3 months. Exclusive Motors also claimed that during the notice period, Lamborghini cars for their dealerships were priced much higher than by Volkswagen Group Sales India. But Competition Commission of India had rejected this claim on 6th November 2012 saying that any car company can appoint their own company as an importer and dealer and there was no reason to start legal process against Lamborghini or Volkswagen Group.
Exclusive Motors has now approached the Competition Appellate Tribunal with plea against both Lamborghini as well as CCI and notices have been sent to both parties.
Source – Economic Times
