Heathrow Airport fined £1.6million for banning a nearby hotel from charging less for parking than Terminal 5

HEATHROW has been fined £1.6million after ordering the nearby Sofitel to not charge non-hotel guests cheaper parking than its own Terminal 5 car parks.

The airport was found in breach of competition laws by the CMA (Competition and Markets Authority).

Arora Group - which owns the hotel - had agreed to Heathrow's terms in its land lease agreement.

It then voluntarily came forward to the CMA about the collusion, and so was granted immunity with no fine.

Meanwhile, the airport accepted the investigation findings and has now removed the pricing restriction.

Having willingly settled the case, Heathrow's fine was reduced by 20 per cent from £2million to £1.6million.

This is the first instance of the CMA taking competition law action in a case involving a land agreement.

The government body has now sent letters to other airports and their nearby hotels warning them against a similar breach.

Depending on date, time and length of stay, Terminal 5 can charge from £27.90 to £93.50 for a 24-hour parking period.

Ann Pope, the CMA’s Senior Director for Antitrust, said: "Airport car parking charges are paid by millions of people and any agreements to restrict price competition are not acceptable.

"Competition law applies to land agreements at airport car parks in the same way as any other type of business arrangement.

"This fine should act as a strong warning to all companies that the CMA will take action to make sure businesses are free to compete on price."

The CMA has a dedicated reporting hotline for cartels (020 3738 6888) and recently launched a  to encourage more people to come forward with information about suspected illegal behaviour.