NEW DELHI, Sept 30: The Competition Appellate Tribunal has dismissed an appeal by the Travel Agents Association against the CCI order on the government move asking its officials to purchase tickets exclusively from two entities.
The case relates to an office memorandum issued by the Finance Ministry in March 2006, asking government officials to purchase travel tickets/tour exclusively from Balmer Lawrie & Co or Ashok Travels and Tours Ltd.
Stating that the memorandum is anti-competitive, the association had approached the Competition Commission of India. In September 2010, CCI closed the case saying there was no prima facie opinion to pursue the same.
In its order dated September 26 this year, the tribunal dismissed the appeal against CCI order.
“In so far as the contention that the government memorandum was in nature of anti-competitive agreement, the finding of the CCI is correct that the said government memorandum does not amount to an agreement.
“It is an internal administrative decision to deal with a particular agency in the matter of securing air tickets,” it said.
Regarding association’s contention that the government was abusing its dominant position in the market, the tribunal noted that the government cannot be said to be a dominant enterprise in the relevant market.
“The CCI is right in holding that the government is a consumer in the relevant market for procuring the air tickets for domestic air travel.
“The government in its role as a consumer has sought the services of respondent nos 1 and 2 (Balmer Lawrie & Co and Ashok Travels and Tours), there is no question of its dominance merely because the government officials purchase large number of tickets,” the order said.
As per the Travel Agents Association, the government had used its position of dominance only in favour of Balmer Lawrie & Co and Ashok Travels & Tours. (PTI)
Trending Now
E-Paper
Follow our WhatsApp channel