A financial penalty on British Airways (BA) for engaging in anti-competitive practices with Virgin Atlantic Airways (VS) has been more than halved.
In August 2007, the UK’s Office of Fair Trading (OFT) gave notice that it intended to fine the national flag carrier £121.5 million ($188.3 million) for coordinating its fuel surcharge pricing with VS over an 18-month period up to January 2006.
The fine has now been reduced to £58.5 million ($90.6 million) after the OFT took into account several factors, including developments in English case law and BA’s cooperation to bring the matter to an earlier conclusion.
VS has been spared a financial penalty as a result of bringing the collusion to OFT’s attention.
The OFT has the power to fine companies up to 10% of their global annual turnover.
Commenting on the decision, OFT senior director of cartels and criminal enforcement Ali Nikpay said that the size of the fine “sends out a strong message that coordinating pricing through the exchange of confidential information between competitors is unlawful.”
Article Source : ATW Daily News
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