If the Market Power Determination (MPD) test is met, the airport will have to pay a regulation licence.
There are three tests in an MPD, including if the airport has substantial market power, if competition law provides sufficient protection and if regulation would outweigh the adverse effects.
The CAA has started the proceedings because an "interested party" requested it, and will consult with the airport operator and other relevant parties during the investigation.
"Because the CAA has not previously carried out such a review for Manchester, it is under a legal obligation to agree to the request," said a spokesperson from the airport.
"We will participate in the review process and look forward to contributing to The CAA’s work programme."
A statement released by The CAA said: "The CAA has not reached a view on this matter and no assumption should be made at this point whether the market power test will or will not be met in relation to Manchester airport."
