Ministry of Corporate Affairs Extends Competition Law Exemption to Vessel Sharing Agreements

On July 4, 2018, the Ministry of Corporate Affairs (‘MCA’) issued a notification granting an additional extension of three years to Vessel Sharing Agreements (‘VSAs’) of Liner Shipping Industry from the provision of Section 3 of the Competition Act. VSAs are entered into by liner shipping companies to share a specific number of load carrying vessels on popular routes. However, all VSAs will be subjected to monitoring by the Directorate General of Shipping. The exemption is in line with the government’s initiative to increase the ease of doing business in India, and in sync with international best practices, which include not indulging in anti-competitive practices, including price fixing, limitation of capacity or sale, and allocation of markets or customers.

Published In:Inter Alia Special Edition Competition Law September 2018 [ English
Date: September 19, 2018