CCI rejects allegations of anti-competitive practices against GMR Airports

Fair trade regulator CCI has dismissed allegations of anti-competitive practices against GMR Airports and Delhi Airport with respect to the awarding of certain contracts.

The Indira Gandhi International Airport (IGIA) in the national capital is operated by the GMR Group-led consortium Delhi International Airport Ltd (DIAL).

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

After reviewing submissions from the involved parties, the Competition Commission of India (CCI) said the contracts for parking and lounge services were awarded through a competitive bidding process, as mandated under the Operation, Management, and Development Agreement (OMDA). 

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

"... the Commission, in relation to the allegation under Section 4(2)(a)(i), is of the view that the imposition of 13 per cent fee on tenders is a continuation of the charges previously levied by AAI, and notes that the same is being levied uniformly on all the service providers, with no further increase," the regulator said in a 19-page order.

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

The regulator also said that as per the OMDA Agreement, DIAL has the right to sub-contract third-party entities for providing services like parking and lounge services and also has the right to acquire ownership of such entities.

Finding that there is no prima facie case of contravention of the competition law, CCI rejected the complaint.