Argentina: Renault facing abuse of dominance charge

The Association of Argentine Component Factories (AFAC), a group representing Argentina’s auto-parts sector, has asked the National Commission for the Defense of Competition (CNDC) to investigate certain actions by the Renault company in Argentina, which they accuse of abusing their dominant position in the market.

“The investigation request exposes questions generated by a monopsony situation with Renault over its Argentine suppliers, as it is the only customer…” the AFAC said, also accusing a de facto monopoly in the face of the restrictions faced by consumers in accessing specialized independent workshops, as well as a monopoly for the sale of spare parts in the network of official Renault workshops. The AFAC has accused Renault of engaging in various abusive and restrictive practices over the independent auto-parts market, including the termination of contracts without cause, control of stock changes, or the imposition of co-suppliers

Renault clarified that it has not received a notice from the CNDC, so could not respond to the charges. The conflict between Renault and the auto-parts sector began at the end of last year, when the strengthening of the dollar hit the industry hard and where, AFAC alleges, Renault took a long time to adjust prices, causing serious financial consequences for the sector.