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KPPU begins the hearing on AHM's monopolistic practice case

15 July 2020 07:23

JAKARTA - The Business Competition Supervisory Commission (KPPU) began the hearing on allegations of tying and bundling conducted by PT Astra Honda Motor (AHM) related to motorcycle lubricant products, yesterday (14/7). KPPU investigators found that AHASS workshops were only allowed to sell AHM's lubricants.

Based on a press release published on Tuesday (14/7), KPPU investigators found allegations of violations related to an exclusive agreement between Astra Honda Authorized Service Station (AHASS) and AHM. Owners of AHASS workshop are required to purchase several spare parts from AHM, such as lubricants. In addition, there is an agreement about price cut on parts, including lubricants, if those workshops only sell genuine parts from AHM.

KPPU said that AHASS workshops are not AHM agents, but only a trademark that can be owned by individuals or business entities. While AHM is the Sole Agent Brand Holder (ATPM), manufacturer, and distributor of Honda motorcycles and its spare parts, including AHM lubricants.

KPPU investigators found that AHASS workshops were not allowed to sell lubricants from other manufacturers, especially those with similar specifications (SAE 10W-30, JASO MB, API SG or above).

AHM allegedly violated Article 15 paragraph 2 of Law No.5 / 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition. (LK/AR)

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