Predatory Pricing : JIO cases | MarketExpress

The Commission notes that after the opening up of telecommunication market to private players, this market has witnessed entry of a number of players competing with each other, resulting in decrease of tariffs and constant improvements in quality and variety of services.

The allegations against Reliance Jio Infocomm Limited by Bharti Airtel Limited in Case No. 03 of 2017 are that of predatory pricing which is in contravention of Section 4(2)(a)(ii) of the Competition Act and Reliance Industries Limited use of financial strength in other markets to enter into the telecom market which is in contravention of Section 4(2)(e) of the Competition Act.
Similar allegations were made in Case No. 98 of 2016, to establish abuse of dominance, namely :

1. Huge investment of Rs 1,50,000/- crore in telecom industry is stated to be an indication of its dominant position in comparison to the other existing telecom players and indicate imminent leadership in the telecom sector.

2. Reliance is providing the same services at a discount of 90% – predatory pricing.

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Predatory Pricing : JIO cases – MarketExpress.