The Competition and Markets Authority (CMA) and the CAA have released a joint open letter reminding airport operators of their legal obligations.
The letter said: “The CMA has recently received intelligence to suggest that some UK airport operators might not always be complying with competition law.”
The CMA and CAA said they were concerned the Airport Charges Regulations (ACRs) were not being adhered to. ACRs require large airport operators to consult with customers on proposed changes to airport charges.
The letter is signed by Juliette Enser, CMA senior director, cartels and Paul Smith, the CAA’s group director, consumers and markets.
It added: “While it is appropriate to consult publicly before modifying your airport charges, you must not either share additional information or discuss with other airport operators your pricing or competitive strategies.”
The two bodies acknowledged “extraordinary pressures and uncertainty for the aviation sector” but added: “In difficult times, it may seem tempting to reduce uncertainty by sharing confidential information with competitors. However, sharing and receiving such information may be illegal under competition law. Giving a competitor insight into your future commercial strategy may reduce competition, leading to increased prices and reduced service or choice.
“This is unfair to customers (both airlines and end consumers), many of whom have also faced and continue to face significant challenges due to the pandemic and other cost pressures.”
An airport is subject to ACRs if more than five million passengers used it in the calendar year two years before.
The letter said because of the pandemic, airports’ passenger numbers for 2020 and 2021 were atypically low, “which means the number of UK airports subject to the ACRs in 2022 and 2023 has been substantially reduced”.
The letter added staffing changes because of the pandemic were not an excuse for non-compliance.
“Neither the CMA nor the CAA consider changes in staff or lack of awareness to be mitigating factors for companies that breach competition law. It is your responsibility to ensure that your business complies with competition law.”
Breaches of the rules can incur fines of up to 10% of worldwide turnover, director disqualifications of up to 15 years and criminal prosecutions of individuals directly involved.
