CCI Current Affairs

CCI imposes Rs 258 cr fine on Jet Airways, IndiGo, SpiceJet

The Competition Commission of India (CCI) has slapped penalties worth Rs 258 crore on three leading airlines- Jet Airways, IndiGo and SpiceJet for cartelisation in fixing cargo fuel surcharge.

In this regard, it also issued a cease and desist order against these three airlines on the complaint filed by Express Industry Council of India (EICI). In its complaint EICI also had named Air India and GoAir apart from the three airlines.

In its order, the CCI noted that

  • These 3 airlines acted in collusion to fix fuel surcharge rates which resulted in indirectly determining the rates of air cargo transport.
  • Imposed penalties are: 152 crores rupees upon Jet Airways, 64 crores rupees upon IndiGo and 42 crores rupees upon Spice Jet.
  • The conduct of these airlines was contravention of the anti-competitive agreements in the air cargo industry and it undermined economic development of the country and ultimately affected the end consumers.
  • Fuel surcharge was essentially introduced to mitigate the fuel price volatility. But cartelisation of it by these leading airliners has harmed the fair competition in the market.

CCI however has imposed no penalty upon Air India and Go Airlines as they were not found violating competitive norms. It has asked Jet Airways, IndiGo and SpiceJet to immediately stop indulging in such anti-competitive practices.

About Competition Commission of India

  • The CCI was established to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade.
  • Its predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission) which was functional prior to 1991 Economic Reforms.
  • The CCI acts as a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
  • It is statutory body established under The Competition Act of 2002. It was established in 2003 and became fully functional in 2009.

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CCI imposes Rs. 420 crore fine on Hyundai for anti-competitive practices

The Competition Commission of India (CCI) has imposed fine of 420 crore rupees on the local unit of Hyundai Motor Co.

The fined was imposed after CCI investigation had found that Hyundai was engaged in anti-competitive practices. The fine imposed on Hyundai is 2 per cent of its annual turnover in India in past 2 year viz. 2009-10, 2010-11 and 2011-12.

CCI also had found other carmakers like Mahindra Reva Electric Car Company and Premier Ltd in violation of competitive practices but did not impose fine on them.

The CCI has notified Hyundai to deposit the penalty within 60 days from the order date and has warned these 3 carmakers to take corrective measures.

Anti-competitive practices: CCI in its investigation had found that Hyundai, Reva and Premier were restricting access to diagnostic tools and genuine spare parts in the market which distorted fair competition. This act had resulted in repairing and servicing of cars of these companies more expensive for consumers.

About Competition Commission of India (CCI)

  • CCI quasi-judicial statutory body whose predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission).
  • It was established 2003 as per the provisions of The Competition Act, 2002 and became fully functional only by 2009.
  • It was established with an aim to eliminate anti-competitive practices that adversely affect competition in different industries/areas and protect interests of consumers and ensure freedom of trade and also to give opinions to statutory authorities.

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