Competition Commission closes case against IATA

Fair trade regulator CCI has closed a case against the International Air Transport Association (IATA) after finding no evidence of it violating competition norms.
The complaint was filed by the Air Cargo Agents Association of India against IATA and the International Air Transport Association (India) Pvt Ltd, the opposite parties.
It was alleged that IATA was determining the rate of cargo agents' commission in an unfair manner and that rules of Cargo Accounts Settlement System (CASS) are anti-competitive.
Competition Commission of India (CCI) has decided to close the case after carrying out a detailed probe into the complaint.
Closing the case, the regulator said the opposite parties have not contravened any of provisions of the Competition Act.

According to the regulator, IATA was not in favour of fixed commission system and the Commission finds force in the contention of the opposite parties that the system of 5 per cent commission was due to lobby of the members of the air cargo agents association before the government.

"Thus, based on the above evidences and circumstances, the Commission is of the opinion that the allegation of fixing of the rate of commission for cargo agents by the opposite parties... Does not hold valid and therefore, the opposite parties have not contravened the provision of section 3(3)(a) of the Act," the order, dated June 4 and made public today, said.

Section 3 of the Competition Act refers to anti-competitive agreements.
After finding prima facie evidence of competition norms violations, the Commission, in March 2013, had directed the Director General (DG) to probe the matter.
DG, which is the investigation arm of the Commission, had also concluded that opposite parties did not contravene competition norms.