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The Competition Commission of India (CCI) has decided that joint ventures or subsidiaries of Maersk-owned APM Terminals have not contravened provisions of competition law relating to abuse of dominant behaviour, as they are not in a dominant position.
The group’s companies include Gateway Terminals India Private Limited (GTIPL), APM Terminals Pipavav/ Gujarat Pipavav Port, APM Terminals Inland Services (Main), APM Terminals Inland Services (Annex) and APM Terminals Management B.V.
At the JN Port in Navi Mumbai, GTIPL’s cargo traffic has been declining since 2014-15 when it stood at 45.16 per cent; 45.06 per cent in 2014-15 and 41.42 per cent in 2015-16. Moreover, newer terminals have either begun functioning or are expected to start operations, said CCI.
Moreover, Nhava Sheva (India) Gateway Terminal Private Limited, being developed by DP World, has been partially operational since April 2015 and Bharat Mumbai Container Terminals Private Limited, being developed by PSA International, is expected to commence its operations by the end of 2017, it stated.
Clears doubtsBased on these aspects, CCI said AP Terminal subsidiaries/joint ventures were not found to be in a dominant position in the relevant market.
“In the absence of dominance, the Commission was of the view that the alleged conduct of Gateway Terminals India (GTI) need not be examined….no case of contravention of any of the provisions of Section 4 of the Act is made out against in the present case.”
The commission also refuted allegations regarding bundling of services by the APM Terminal Group companies in the container freight station space by referring to the large number of container freight stations (CFS) in and around JN Port.
Moreover, a notification of the customs department of the Government of India stipulates that the usage of a particular CFS facility is entirely the prerogative of a consignee, and in the absence of the consignee making this choice, shipping lines may nominate the CFS facility. Thus, the selection of CFS service providers at ports does not always lie with the shipping lines, CCI said.
It also noted that GTIPL had started ‘Direct Port Delivery’ (DPD) facility to accredited and approved consignees. The facility enables GTIPL to directly deliver goods to the consignees without intervention of any CFS operator.
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