June 10, 2017

CCI rejects Airtel’s allegations against Reliance

Airtel, Reliance jio

The Competition Commission of India (CCI) rejected Bharti Airtel’s allegations that Reliance Industries and its telecom venture Reliance Jio engaged in predatory pricing while launching mobile services through attractive and free offers.

After hearing arguments from both parties, CCI said that a single-digit market share of Jio does not give it a position from where it can dominate the market and engage in anticompetitive tactics through abuse of its strength.

According to CCI, “In the absence of any dominant position being enjoyed by Jio in the relevant market, the question of examining the alleged abuse does not arise. Notwithstanding this, the offers of Jio do not appear to raise any competition concern at this stage.” CCI also said, "Free services cannot by itself raise competition concerns unless the same is offered by a dominant enterprise and shown to be tainted with an anti-competitive objective of excluding competition/competitors."

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