Competition Commission to probe abuse of dominance by ITPO

NEW DELHI: Fair trade watchdog CCI has ordered a probe into alleged abuse of dominant market position by ITPO for conditions imposed by it for trade shows and exhibitions held at Pragati Maidan in the national capital.

The probe has been ordered by the Competition Commission of India following a complaint to this effect by the Indian Exhibition Industry Association against ITPO and the Ministry of Commerce & Industry.

India Trade Promotion Organisation is the government's nodal agency to promote external trade and it accords approvals for holding of international trade fairs in India and abroad. ITPO organises and facilitates various industrial trade fair and exhibition shows in India and abroad.

In an order, dated May 6 but made public today, the CCI observed that prima-facie "it appears that ITPO was abusing its dominant position" and there was sufficient material to refer the case for a probe by the Director General (DG), the investigation arm of the fair trade regulator.

The probe has been ordered to find out whether ITPO was imposing discriminatory conditions of time gap restrictions for trade shows; also, whether it was limiting the provision of services of holding trade show/exhibition at Pragati Maidan in Delhi by giving itself the preferential treatment for organising trade fairs and exhibitions over other organisers.

Further, ITPO has been accused of denying access to this venue to other exhibitors by altering the guidelines and by delaying confirmation of allotment dates to other organisers.

As manager of Pragati Maidan, the ITPO has also been charged with making venue allotment on certain conditions, such as compulsorily taking of foyer area and engaging of an empanelled house keeping agency.

"Resultantly, the Commission is of the opinion that prima facie there is sufficient material to refer the case to the Director General (DG) to cause an investigation to be made into the matter under...of the (Competition) Act," CCI said.

Indian Exhibition Industry Association had accused that the activities of ITPO were anti-competitive in nature and adversely affected the competition.