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The Competition Commission of India is probing International Air Transport Association and its Indian arm for anti-competitive behaviour.
The Commission has ordered its investigative arm to look into a complaint filed by the Air Cargo Agents Association of India.
The Association had alleged that cargo agents needed to seek accreditation from IATA to undertake international air cargo transportation services for IATA members.
“The Commission is of the opinion that the decisions/ resolution prescribing the rate of commission to be paid to the intermediaries or similar other decisions pertaining to prices/charges were prima facie in contravention of Section 3(3) of the (Competition) Act,” it said.
Price determination
According to the Section, an agreement entered into between enterprises, which determines purchase or sale price, directly or indirectly, is presumed to have a considerable adverse effect on competition.
This self-acquired regulatory power for registering, accrediting and regulating the engagement of air cargo agents in India is said to have enabled IATA to indulge in anti-competitive activities, it had alleged.
The cargo agents’ grouping has 278 active, 298 associate, 42 allied and nine commercial members.
The Commission said even though IATA is not based in the country, Section 32 of the Act provides extra-territorial jurisdiction to investigate matters having an appreciable adverse effect on competition in India.
As several Indian airlines are members of IATA, its anti-competitive conduct, if any, can be scrutinised under the Competition Act, it added.
The CCI said in recent years, allegations have been made against IATA and its Indian arm for functioning as a cartel.
bindu.menon@thehindu.co.in
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