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The Civil Aviation Authority (CAA) is consulting on draft guidance about the application of the market power test. The Civil Aviation Act 2012, requires that the CAA regulates certain airport operators by means of a licence if they meet the requirements of this test.
The market power test consists of 3 parts:
- test A - whether an airport operator has substantial market power (SMP)
- test B - whether competition law does not provide sufficient protection against the risk of abuse of the SMP
- test C - whether the benefits of regulating the airport operator by means of a licence outweigh the adverse effects