CCI Rejects Anti-Competitive Practice Complaints Against GMR Airports

CCI Rejects Anti-Competitive Practice Complaints Against GMR Airports

An NGO alleged that it charged excessive fees for contracts related to parking and lounge services

The Competition Commission of India (CCI) has disregarded allegations of GMR Airport’s monopolistic practices at the Indira Gandhi International Airport (IGIA), New Delhi.

The fair-trade watchdog observed that parking and lounge service contracts were awarded through competitive bidding, following guidelines in the Operation, Management, and Development Agreement (OMDA).

The IGIA is operated by the GMR Group-led consortium Delhi International Airport Ltd (DIAL).

An NGO alleged that GMR Airports was engaged in monopolistic practices and charging excessive fees for contracts related to parking and lounge services at the IGIA.

A complaint was also raised against the Airports Authority of India (AAI), Ministry of Civil Aviation and Fraport AG Frankfurt Airport Services Worldwide.

In its 19-page order, the CCI stated, “The allegations under Section 4(2)(a)(i) on the imposition of 13 percent fee on tenders is a continuation of the charges previously levied on the AAI. It is levied uniformly on all service providers, with no increase.”

Sections 3 and 4 of the Competition Act pertain to anti-competitive agreements and abuse of dominant position, respectively.

The regulator added that as per the OMDA Agreement, DIAL had the right to sub-contract third-party entities to provide parking and lounge services and to acquire ownership.

Finding no prima facie case of contravention of the competition law, the complaints were dismissed.