CCI issues order against Chennai-based trailer associations for indulging in anti-competitive practices

New Delhi [India], July 21 : The Competition Commission of India (CCI) issued a final order on Thursday against ten Trailer Owner Associations that were found to have contravened the provisions of some sections of the Competition Act, 2002
The Act proscribes anti-competitive agreements.
These associations, based in Chennai, were alleged to have interfered in the fixation of tariffs for trailers and imposed a restriction upon the members of the National Association of Container Freight Station (NACFS/Informant) and their sister concerns, with regard to plying of their own trailers for movement of containers, the commission said in a statement on Thursday.
"NACFS/Informant alleged that these decisions were taken in trade association meetings, wherein these conditions were made to be agreed upon by the members of the Informant on alleged threats of strikes," it added.
The Commission examined the role of trade associations and the legitimacy of actions taken by them under the Act, and found that, in the present matter, the trailer owner associations have transgressed their legal contours and facilitated collusive decision-making by allowing fixation of prices and restricting the provision of services under their aegis.
The Commission noted that the associations, many of which did not appear before the Commission during the hearings, were not able to rebut the said presumption.
They were found to have manipulated the market forces and narrowed the scope of competition.
Based on evidence on record, CCI found the ten associations to have contravened the provisions of Section 3(3)(a) and 3(3)(b) read with Section 3(1) of the Act. Accordingly, the Commission directed the TOAs to cease and desist from indulging in practices that were found to be in contravention of the provisions of Section 3 of the Act.
A copy of the order is available on CCI's website at www.cci.gov.in.