CCI hears dealer complaint against Nissan over alleged abuse of dominance

This is an order by the Competition Commission of India (CCI) in Case No. 09 of 2026, addressing a complaint by a Nissan dealer alleging anti-competitive practices and abuse of dominance by Nissan Motor India Pvt. Ltd. It matters to citizens as it involves the regulation of vertical agreements in the automobile sector and the protection of dealer rights under competition law.

Who it concerns: The order concerns Shri Rajeev Bakshi (Informant, partner of M/s You We and Cars), Nissan Motor India Pvt. Ltd. (Opposite Party), and the Competition Commission of India (Regulator).

What the Commission found or ordered

• The CCI noted that the Informant alleged contravention of Sections 3 and 4 of the Competition Act, 2002, specifically regarding vertical restraints and abuse of dominant position.
• The Informant alleged that Nissan issued a termination notice dated 05.09.2025 without a show cause notice or opportunity of hearing, despite the dealership agreement being valid until 31.03.2026.
• The Informant claimed to have invested over INR 10 Crore in infrastructure and inventory under a standard-form Dealership Agreement dated 01.10.2024.
• The CCI observed that the relationship is governed by a Dealership Agreement and noted specific clauses (e.g., Clause 3.3.3) that restrict dealers from selling other brands without written consent.
• The CCI referenced its previous decision in Case No. 36 and 82 of 2014 (Fx Enterprise Solutions India Pvt. Ltd. Vs Hyundai Motor India Ltd), where similar exclusive dealership clauses were found not to restrict dealers from operating other OEM dealerships.
• The CCI noted that the Informant has not furnished evidence to demonstrate that the Opposite Party restricted its dealers from acquiring dealerships of competing manufacturers.

Also in the document

• The CCI cited a 2014 precedent involving Hyundai Motor India Ltd to contextualize the interpretation of exclusive dealership clauses under Section 3(4) of the Act.
• The Informant filed an Interim Application (IA) No. 89 of 2026 seeking directions to restrain Nissan from giving effect to the termination notice during the pendency of proceedings.
• The CCI considered the matter in its ordinary meeting held on 17.06.2026.