Indian CFS Association seeks anti-trust case action against Maersk Group
THE Competition Commission of India (CCI) has received a request from the Container Freight Station Association to make it an aggrieved party in a case that alleges Maersk abused its dominant position in the container freight station sector, chiefly at JNPT in Mumbai.
The association has filed an application for "impleadment", which involves suing a third party in a case that is already in progress, reported New Delhi's Business Standard.
The Indian Competition Review, a policy advisory body, had earlier this year recommended an anti-trust case against the AP Moller-Maersk group for allegedly misusing its dominant position at JNPT to dictate prices to restrict competition in container freight stations (CFS).
The advisory body had noted that Maersk Group does so by bundling services with some CFSs - either operated by the group or those with which it has tie-ups, forcing shipping lines to use these CFSs even if they are more expensive.
In its impleadment application, the association alleged that due to Maersk's abuse of its dominant position in JNPT the "livelihood of hundreds of people is being affected". They also said in the application that this abuse of its dominant position is affecting 30 CFSs operating at the JNPT.
Maersk controls its CFS through its company APM Terminals which has a 74 per cent stake in Gateway Terminals India (GTI), the biggest of the four container terminals operating at JNPT.
The association also charged that APM Terminals, which owns two CFSes at Nhava Sheva, is coercing shipping lines to use its CFS by granting berthing access in its Nhava Sheva and the Pipava Terminal in Gujarat.
THE Competition Commission of India (CCI) has received a request from the Container Freight Station Association to make it an aggrieved party in a case that alleges Maersk abused its dominant position in the container freight station sector, chiefly at JNPT in Mumbai.
The association has filed an application for "impleadment", which involves suing a third party in a case that is already in progress, reported New Delhi's Business Standard.
The Indian Competition Review, a policy advisory body, had earlier this year recommended an anti-trust case against the AP Moller-Maersk group for allegedly misusing its dominant position at JNPT to dictate prices to restrict competition in container freight stations (CFS).
The advisory body had noted that Maersk Group does so by bundling services with some CFSs - either operated by the group or those with which it has tie-ups, forcing shipping lines to use these CFSs even if they are more expensive.
In its impleadment application, the association alleged that due to Maersk's abuse of its dominant position in JNPT the "livelihood of hundreds of people is being affected". They also said in the application that this abuse of its dominant position is affecting 30 CFSs operating at the JNPT.
Maersk controls its CFS through its company APM Terminals which has a 74 per cent stake in Gateway Terminals India (GTI), the biggest of the four container terminals operating at JNPT.
The association also charged that APM Terminals, which owns two CFSes at Nhava Sheva, is coercing shipping lines to use its CFS by granting berthing access in its Nhava Sheva and the Pipava Terminal in Gujarat.