The Competition Commission of India (CCI) has imposed a penalty of ₹6.75 crore on the Indian Trade Promotion Organisation (ITPO) for abusing its dominant position.
In its order, the CCI also directed ITPO to “cease and desist” from indulging in such anti-competitive practices which have been found to be abusive in terms of the provisions of the Competition Act.
CCI had started its probe following a complaint to this effect by the Indian Exhibition Industry Association against ITPO. The complainant had alleged time gap restriction imposed by ITPO between two exhibitions/ fairs.
ITPO organises and facilitates various industrial trade fair and exhibition shows in India and abroad. CCI had ordered a Director General probe last year to ascertain whether ITPO was imposing discriminatory conditions of time gap restrictions for trade shows; also, whether it was limiting the provision of services of holding trade show/exhibition at Pragati Maidan in Delhi by giving itself the preferential treatment for organising trade fairs and exhibitions over other organisers.
ITPO had also been accused of denying access to this venue to other exhibitors by altering the guidelines and by delaying confirmation of allotment dates to other organisers.
The informant also alleged abuse of dominant position by ITPO by virtue of playing a dual role as a regulator as well as the organiser of exhibitions which, as per the informant, led to the contravention of Section 4 of the Act.
The CCI said it considered it “appropriate to impose penalty at 2 per cent of the average of the income/receipt/turnover for the last three preceding financial years...” amounting to a penalty of ₹6.75 crore.