CCI Current Affairs

CCI imposes Rs. 54 crore fine on 3 airlines for unfair business practices

The Competition Commission of India (CCI) has imposed fine of more than Rs. 54 crore on Jet Airways, InterGlobe Aviation and SpiceJet for unfair business practices with respect to fixing fuel surcharge on cargo transport.

The CCI order comes on complaint filed by Express Industry Council of India (EICI) against airlines alleging cartelisation. It has directed three airlines to cease and desist from anti-competitive practices. It is second order on same complaint in nearly three years.

Key Facts

The penalties were imposed on airlines for concerted action in fixing and revising fuel surcharge (FSC), a component of freight charges. These airlines had acted in concerted manner in fixing and revising FSC rates in violation of competition norms that prohibit anti-competitive agreements, including cartels.

The penalties were imposed at the rate of 3% of three airlines average relevant turnover of last 3 financial years and taking into consideration financial position of airlines at relevant time and noting that FSC constitutes about 20-30% of cargo revenue.

Competition Commission of India (CCI)

CCI is quasi-judicial statutory body established under The Competition Act, 2002. It was established in October 2003 and became fully functional in May 2009. It consists of Chairperson and 6 Members appointed by Central Government.

CCI aims to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade. Its mandate is to eliminate practices having adverse effect on competition, promote and sustain competition, protect interests of consumers and ensure freedom of trade in markets of India.

It is also required to give opinion on competition issues on reference received from statutory authority established under any law and undertakes competition advocacy, create public awareness and impart training on competition issues.

Month: Categories: India Current Affairs 2018

Tags:

CCI fines Google Rs.136 crore for search bias

The Competition Commission of India (CCI) has imposed Rs.136 crore fine on world’s most popular search engine Google for unfair business practices in Indian market for online search. The penalty was imposed on Google for infringing anti-trust conduct.

CCI Ruling

CCI held that Google was found to be indulged in practices of search bias and by doing so it has caused harm to its competitors as well as to users. It also held that Google was leveraging its dominance in market for online general web search, to strengthen its position in market for online syndicate search service. The penalty amount imposed translates to 5% of company’s average total revenue generated from India operations from its different business segments for financial years 2013, 2014 and 2015.

Background

CCI passed the penalty order on complaints filed in 2012 by Matrimony.com and Consumer Unity & Trust Society (CUTS) in 2012. It was alleged that Google is indulging in abuse of dominant position in market for online search through practices leading to search bias and search manipulation, among others.

CCI’s ruling comes after similar anti-trust setbacks for Google in European Union and Russia. In 2017, in similar case EU’s anti-trust arm had fined Google $2.7 billion for promoting its own products over others. Google also had settled an anti-trust matter in Russia out of court.

Competition Commission of India (CCI)

CCI is quasi-judicial statutory body established under The Competition Act, 2002. It was established in October 2003 and became fully functional in May 2009. It aims to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade.

CCI consists of a Chairperson and 6 Members appointed by the Central Government. Its mandate is to eliminate practices having adverse effect on competition, promote and sustain competition, protect interests of consumers and ensure freedom of trade in markets of India.

CCI is also required to give opinion on competition issues on reference received from statutory authority established under any law and undertakes competition advocacy, create public awareness and impart training on competition issues.

Month: Categories: India Current Affairs 2018

Tags:

Advertisement

12345