Honda dealer case dropped
- Published: 11/04/2013 at 09:24 AM
- Online news:
Prosecutors have decided not to pursue unfair-trade charges against AP Honda, the local Honda motorcycle distributor.
Local big-bike enthusiasts enjoy the open road during an outing in Khao Yai, Nakhon Ratchasima. AP Honda/Ravan Studio
With the statute of limitations in the case ending this month, the move puts to rest a decade-long legal conflict.
Vatchari Vimooktayon, Commerce Ministry permanent secretary, said the Attorney-General's Office had found there was insufficient evidence to take up the case against AP Honda.
The Trade Competition Board (TCB) agreed earlier this year to press the charges against the company.
The case dates back to 2003 when TCB ruled that AP Honda had violated Section 29 of the Trade Competition Act by indirectly forcing its agents to distribute only Honda motorcycles.
AP Honda, which then had a 70% market share, was accused by distributors of blocking agents from selling other motorcycle brands.
After spending nearly 10 years refining its evidence, TCB sent the case to prosecutors in January.
But the prosecutors said on Wednesday there was still not enough evidence to proceed.
The Trade Competition Act prohibits business operators from engaging in unfair practices that destroy, damage, block or limit the operations of rivals or force rivals to give up their business.
Violations are punishable by a jail term for the authorised managing director of up to three years, and/or a fine of up to 6 million baht.
About the author
- Writer: Phusadee Arunmas
Position: Business Reporter