Antitrust Law Daily Wrap Up, ANTITRUST NEWS: IATA files complaint in EC investigation of OEM dominant position abuses, (Mar 24, 2016)

By Michael Menzhuber, J.D., LL.M.

The International Air Transport Association (IATA) has become a complainant in the European Commission’s investigation into alleged abuses of dominant positions by manufacturers of aviation equipment, the organization announced yesterday. The investigation is being conducted by the EC’s Directorate General for Competition (DG-COMP).

In 2015, the DG-COMP sent questionnaires to several industry stakeholders, including IATA member airlines, requesting information to validate claims of abuses of dominant positions by original equipment makers (OEMs) with respect to their control of aftermarket repairs, including parts and services.

IATA’s Director General and CEO Tony Tyler stated that, “There are relatively few equipment vendors and our members are frustrated that there is little flexibility in negotiations for aftermarket services.” According to Tyler, because airlines do not have the leverage to resolve these concerns individually, the IATA is fulfilling its role as their global trade association and representing their interests as a complainant.

News: Antitrust