India Competition Commission to focus on airlines, manufacturing sectors

The Competition Commission of India is training its eyes on several sectors, including airlines, in a bid to root out anticompetitive practices in certain industries.

CCI is also said to be looking at cement and tire manufacturers more closely, a report in the Financial Express reported last week.

The move is aimed at preventing companies in these sectors from engaging in antitrust activities, including abusing or misusing a dominant position, price fixing, dealing exclusively with certain retailers, dividing up territories and other forms of cartelization, the report said. The move would also ensure there are no entry barriers for new players. This is the first time that the CCI has given specific directions to trade associations, as well as senior management and employees in marketing and strategy departments of these sectors.

The CCI's newfound diligence could also have an impact on the shipping industry, which is under increasing scrutiny as the European Union has ended antitrust exemption for carriers serving the Asia/Europe trade beginning in October.

The CCI is expected to commence in mid-2008, but has meanwhile asked trade associations to ensure that they would not discuss past and future pricing, profit levels, profit margins or discounts. 

Source:American Shipper