Competition Law in Tourism

A GLOBAL AND LEGAL OVERVIEW OF TRAVEL AGENT REPRESENTATIVES 585 Considering all the comments of the various associations – which end up representing a large part of the world in what concerns travel agencies –, it is clear that the issue regarding IATA’s creation is not a peaceful one. Moreover, it may still face several discussions – possibly stronger – involving Government competition bodies to conclude whether the market will actually be in the presence of something legally allowed by all jurisdictions, therefore something that should be fulfilled, regarding connections and availability for the travel distribution segment. 3. THE LAW OF DEFENCE OF THE BRAZILIAN COMPETITION Given the whole scenario presented for the NDC, and considering the set of uncertainties and even situations that are opposed to the ‘concept’ created by IATA, in the same line to know the Brazilian legal scenario on the subject, Federal Law No. 12.529/2011, which is responsible for the Brazilian System for the Defence of Competition and which, in its Article 36, mentions as follows: “The acts which under any circumstance have as an object or may have the following effects shall be considered violations to the economic order, regardless of fault, even if not achieved: I – to limit, restrain or in any way injure free competition or free initiative; (...) IV – to exercise a dominant position abusively”. In other words, in no circumstance will NDC be able to prevent the prejudice of free competition, which can already be concluded, as a consequence of this article, on differentiated charges presented by an airline to travel agencies using a GDS to a reservation and/or issuance of an air ticket, when there is no charge if the same issue or reservation occurs on the direct portal of the airline or via NDC. A conduct coordinated by airlines through their association could be evaluated according to the Brazilian law mentioned above, when, in the same Article 36, in its second paragraph, we find: “A dominant position is assumed when a company or group of companies is able to unilaterally or jointly change market conditions or when it controls 20% (twenty percent) or more of the relevant market, provided that such percentage may be modified by CADE for specific sectors of the economy” (Art. 36.2).

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