India's competition authority probes IATA for cartel behaviour

THE Competition Commission of India (CCI) is probing International Air Transport Association (IATA) for anti-competitive behaviour, joining other national regulators in assuming extra-territorial jurisdiction.

CCI said allegations have been made against Geneva-based IATA, whose chief Tony Tyler is the former CEO of Hong Kong's Cathay Pacific Airways, for functioning as a cartel, reports the Hindu daily of Chennai.

CCI has ordered its investigative arm to look into a complaint filed by the Air Cargo Agents Association of India, which alleges that cargo agents need accreditation from IATA to undertake international air cargo transport for IATA members.

This self-acquired regulatory power for registering, accrediting and regulating the engagement of air cargo agents in India is said to have enabled IATA to engage in anti-competitive activities, said the report.

"The commission is of the opinion that the decisions/resolution prescribing the rate of commission to be paid to the intermediaries or similar other decisions pertaining to prices/charges were prima facie in contravention of Section 3(3) of the (Competition) Act," it said.

According to the section, an agreement entered into between enterprises, which determines purchase or sale price, directly or indirectly, is presumed to have a considerably adverse effect on competition, said the report.