The Indian Competition Authority examines the algorithm used by airlines to fix ticket prices to determine whether a case of price fixing has occurred (Jet Airways / InterGlobe Aviation)
The Competition Commission of India (“CCI”), anti-trust watchdog of India has lately sprung up in action by tightening the noose around the anti-competitive practices in the aviation sector. Recently in an incident concerning revising and fixing fuel surcharge (FSC) rates by a few airline operators, it has decided to levy huge penalties on the airlines. CCI per a statement [1] releasedhas levied penalties of Rs. 39.81 crore, Rs. 9.45 crore and Rs. 5.10 crore upon Jet Airways (India) Ltd., InterGlobe Aviation Limited and Spice Jet Limited respectively. CCI had stated that the said airlines acted in a concerted manner in fixing and revising the FSC rates and thereby contravened the provisions of Section 3 of the Act which prohibits anticompetitive agreements including cartels. Also, it was
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