The Competition Commission of India (CCI) has dismissed allegations of anti-competitive practices against GMR Airports and Delhi International Airport (DIAL) regarding the awarding of certain contracts at Indira Gandhi International Airport (IGIA).

The IGIA, operated by the GMR Group-led DIAL consortium, was accused by an NGO of engaging in monopolistic practices and imposing excessive charges for contracts related to parking and lounge services.

After reviewing submissions from all involved parties, CCI concluded that the contracts were awarded through a competitive bidding process as required under the Operation, Management, and Development Agreement (OMDA).

The complaint also involved the Airports Authority of India (AAI), the Ministry of Civil Aviation, and Fraport AG Frankfurt Airport Services Worldwide. CCI determined that the 13 percent fee imposed on tenders was a continuation of charges previously levied by AAI and was applied uniformly across all service providers without any additional increase.

Sections 3 and 4 of the Competition Act, which address anti-competitive agreements and abuse of dominant position, were examined in the case. The regulator noted that under the OMDA Agreement, DIAL has the right to sub-contract third-party entities for services such as parking and lounge management, as well as to acquire ownership of these entities.

Finding no prima facie evidence of a competition law violation, CCI dismissed the complaint, concluding that the awarding process adhered to competitive and regulatory guidelines.

News source: Business Standard