CCI rejects Airtel’s complaint against R-Jio

While Jio had filed its initial complaint with the CCI in November 2016, Bharti had moved its petition in February this year.

By: ENS Economic Bureau | New Delhi | Published:June 10, 2017 3:12 am
Airtel, Bharti Airtel, Reliance Jio, Reliance Jio Infocomm, cci, indian express news, business news Bharti had alleged in its petition that 4G services should be seen as the relevant market for determining the charges of predatory pricing since Jio had the largest spectrum in this band, but the CCI rejected the contention.

The Competition Commission of India (CCI) has unanimously rejected Bharti Airtel’s complaint of predatory pricing and anti-competitive behaviour against Reliance Jio Infocomm, filed by the former in February. The grounds on which Bharti’s complaint was rejected were that the relevant market has to be telecommunication services and not 4G services; geographic market cannot be all-India but each of the 22 circles; free services do not mean elimination of competition if player not dominant; and huge investments by parent Reliance Industries in Jio has not established a dominant position of the latter. Accordingly, in its 17-page order, the anti-monopoly body noted no prima facie case of contravention of the provisions of Section 3 or 4 of the Competition Act is made out against Jio and the matter is closed in terms of the provisions of Section 26(2) of the Act.

The dismissal of the complaint comes as a setback for Bharti Airtel as the CCI last month by a majority order admitted a Jio petition to investigate its allegations of cartelisation against Bharti, Vodafone and Idea Cellular as it found prima facie evidence the three abused their dominant market power by forming a cartel of sorts and denying it the requisite number of points of interconnect.

While Jio had filed its initial complaint with the CCI in November 2016, Bharti had moved its petition in February this year.

Bharti had alleged in its petition that 4G services should be seen as the relevant market for determining the charges of predatory pricing since Jio had the largest spectrum in this band, but the CCI rejected the contention. The CCI has said that the licences are provided for unified services, 3G and 4G tariffs are similar, 3G services can run on 4G devices, technology upgradation is key to telecom services, and every operator is in a position to offer a bouquet of services. Hence, if telecommunication services is seen as the relevant market, Jio is not in a dominant position.

On charges that RIL, which is a market leader in its area, has invested huge sums in Jio with the aim of eliminating competition, the CCI has said that financial strength is relevant but not the sole factor to determine dominant position of an enterprise. It said that even incumbent operators have made comparable investments and, therefore, Jio’s success in managing large-scale investment does not suggest any dominant position enjoyed by it.

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