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CCI rejects another complaint against Reliance Jio

The complaint mainly pertained to the free services offered by the new telecom player

Press Trust of India  |  New Delhi 

Reliance Jio
This is the second time that the CCI rejected a complaint against Reliance Jio. The first being of Bharti Airtel.

For the second time in a week, the Competition Commission of India (CCI) has dismissed of unfair business practices made against Mukesh Ambani-led Infocomm.

The complaint mainly pertained to the free services offered by the new telecom player and that it indulged in predatory pricing.

This is the second time that the has rejected a complaint against On June 9, it had dismissed similar made by telecom major

"The Commission is of the view that the introductory offers of OP-1 (Infocomm) do not amount to any contravention of the provisions of the (Competition) Act," said in its order dated June 15 and based its conclusions on the earlier ruling in the complaint.

To decide the case, the regulator considered 'provision of wireless telecommunication services to end users in each of the 22 circles in India' as the relevant market.

Two individuals filed the complaint against Reliance Jio as well as Department of Telecommunications (DoT), Telecom Regulatory Authority of India (Trai) and Bharat Sanchar Nigam Ltd (BSNL).

Since the relevant markets for the two cases were same, extensively cited the previous order in the current ruling.

The market is characterised by the presence of several players resulting in sufficient choice to consumers who can shift from one service provider to another and that too with ease, CCI noted.

"In a competitive market scenario, where there are already big players operating in the market, it would not be anti-competitive for an entrant to incentivise customers towards its own services by giving attractive offers and schemes," the regulator noted.

Quoting the previous order, the watchdog also said that such short-term business strategy of an entrant to penetrate the market and establish its identity cannot be considered to be anti-competitive in nature and as such, cannot be a subject matter of investigation under the Competition Act.

Finding no prima-facie evidence of competition norms violations, CCI also rejected the allegations against DoT, and

First Published: Sat, June 17 2017. 01:14 IST