Airtel files complaint with CCI against Reliance Jio over pricing
India’s largest telecom service provider Bharti Airtel Ltd has filed a complaint against Reliance Jio Infocomm Ltd with Competition Commission of India (CCI), accusing the latter of “creating a monopoly for itself” to reap higher profits in the long run.
In a letter dated 2 February addressed to the competition watchdog, Airtel said Jio’s “predatory free pricing strategy” is to “injure competition”.
“It is a strategic business tactic adopted to enhance market power with the objective of eliminating competition which it has succeeded to a large extent during the quarter Oct to Dec 2016 itself,” Airtel said in the letter, extracts of which have been reviewed by Mint.
“The strategy of RJIL is to bind the customer to free voice and minimize competition, including eliminating competition from smaller players, to gain a higher market share. Once RJIL obtains a higher market share, it would likely increase the costs or even charge for voice calls since competition will be limited and the customer will be left with lesser number of service providers to choose from,” it said.