CCI by its order dated November 17, 2015 penalized three
Airlines for the violation of Section 3(3)(a) read with section 3
(1) of the Competition Act, 2002 (Act). CCI imposed a penalty of 1%
of the average turnover of preceding three years on Jet Airways
(India) Ltd., InterGlobe Aviation Limited and Spice Jet Ltd., which
amounted to INR 151.69 Crores, INR 63.74 Crores and INR 42.48
Crores respectively. A cease and desist order has also been
CCI found that the airlines were acting in parallel conduct and
colluded to fix the Fuel Surcharge (FSC) rates. It concluded that
such conduct of airlines was resulting in indirectly determining
the rates of air cargo transport and thereby contravening
provisions of Section 3(3) (a) of the Act. The airlines had claimed
that FSC is linked to Air Turbine Fuel (ATF) and any increase in
ATF leads to increase in FSC. However, CCI noted that often the FSC
used to increase despite decrease in ATF price as well the dollar
exchange rate. The opposite parties charged FSC at the rate of INR
5/kg in 2008. However, no methodology was supplied for arriving at
this conclusion. There was a parallel increase to INR 9/kg in
April-June 2011. In November 2012 the same was increased to INR
15/kg by Jet, Inter Globe and Spice Jet.
No penalty was imposed on Air India Ltd. as its conduct was not
parallel with other airlines. Similarly, Go Airlines (India) Ltd.
was also exonerated as it gave its cargo space to third party
vendors with no control on any part of commercial/economic aspects
of cargo operations done by vendors, including imposition of FSC.
The order is particularly notable as it is the first case where the
DG Report finding no contravention has been rejected by the CCI and
a finding of contravention has been given by the CCI.
(Source: Order dated November 17, 2015. For full text see
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In the wake of liberalization and privatization that was triggered in India in early nineties, a realization gathered momentum that the existing Monopolistic and Restrictive Trade Practices Act, 1969 was not equipped adequately enough to tackle the competition aspect of the Indian economy.
The Legal Metrology Act, 2009 was passed by the Indian Parliament in order to repeal and replace The Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Enforcement) Act, 1985.
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