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ECJ Confirms European Commission's British Airways Decision

by Ulrika Lomas, for LawAndTax-News.com, Brussels

19 March 2007

The European Court of Justice on Thursday agreed with the European Commission that British Airways had abused its dominant position in the UK, and dismissed the airline's appeal against an earlier Court of First Instance (CFI) verdict.

On 14 July 1999, following an investigation sparked by complaints from rival airline, Virgin Atlantic, the Commission found that BA had abused its dominant position in the UK market for air travel agency services, and accordingly fined the airline EUR6,800,000.

British Airways appealed that decision before the Court of First Instance, which rejected its appeal in 2003.

The ECJ last week confirmed that the bonus schemes (including the so-called 'performance reward schemes') used by British Airways to calculate travel agents' commissions constituted an abuse of dominant position in violation of Article 82 of the EC Treaty, and kept the level of the fine unchanged at EUR6.8 million.

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