The Competition Commission of India (CCI) is looking into allegations that Maruti Suzuki, the country’s biggest car maker, pushes buyers to purchase insurance policies offered by the company, sources said.
In June last year, the CCI received an anonymous complaint alleging insurance plans recommended by Maruti while selling cars resulted in customers paying more compared with other options in the market.
Based on the complaint, the CCI is assessing whether Maruti has engaged in so-called “tie-in arrangements”, in which a car maker promotes preferred suppliers of complementary goods such as lubricants or insurance, the sources said.
Indian law says such practices are anti-competitive if they end up stifling competition and limiting consumer choices.
The commission is looking into the complaint and “it will take a while”, said one of the two sources, who declined to be named as the case details are private.
A Maruti spokesperson said: “We are not aware of any such alleged complaint that is being investigated by the CCI and, therefore, cannot comment on the same.”
The CCI did not respond to a request for comment.
The watchdog can still throw the complaint out if it finds no merit in the allegation, or order a deeper probe by its investigations arm.
Maruti is already the subject of another anti-trust investigation in India. Last year, the CCI ordered its investigation unit to probe allegations that the car maker limits discounts its dealers can offer, a prohibited anti-competitive practice if it hurts consumers.