India’s Competition Regulator Dismisses Antitrust Complaint Against Reliance Jio and 4,500 Firms

The decision, issued under Section 26(2) of the Competition Act, effectively closes the matter at the preliminary stage after the regulator found no prima facie evidence of anti-competitive agreements or abuse of dominant market positions.

According to Outlook Business, which first reported on the order, the complaint was filed by Goutam Mohanta and named thousands of entities operating in sectors including telecommunications, logistics, government procurement, energy, infrastructure, steel, cement, pharmaceuticals, healthcare, consumer goods and real estate.

The complaint alleged violations of Sections 3 and 4 of the Competition Act, provisions that prohibit anti-competitive agreements such as cartelisation and bid-rigging, as well as the abuse of a dominant market position. The complainant accused the companies of engaging in practices including price coordination, market allocation, exclusionary conduct and manipulation of procurement processes.

However, the regulator found that the allegations lacked documentary support and failed to establish any specific instances of collusive conduct.

According to Outlook Business and subsequent reports by Business Standard and The Economic Times, the CCI noted that the complaint did not identify the alleged agreements, specify the time period during which the conduct supposedly occurred, or provide evidence demonstrating coordination among the named entities.

The commission also observed that the allegations concerning logistics and procurement activities lacked supporting material such as freight quotations, invoices, bid records, correspondence or market data. In relation to claims involving the Government e-Marketplace (GeM), the regulator said the complaint failed to identify particular companies or provide evidence of information sharing, bid rotation or coordinated bidding practices.

In its order, the CCI cautioned against initiating what it described as a “roving and fishing inquiry” in the absence of foundational facts or evidence linking specific companies to alleged anti-competitive conduct.

The case also included allegations against telecom operators, particularly Reliance Jio, with claims that similarities in recharge plans and service offerings indicated collusion. The regulator, however, did not find sufficient grounds to infer cartelisation from parallel market behaviour alone.

Competition authorities globally have generally held that similar pricing patterns or comparable commercial strategies do not automatically constitute evidence of collusion unless accompanied by proof of communication, agreements or concerted action among market participants.

The ruling comes amid increasing scrutiny of market concentration and competitive practices in several sectors of the Indian economy. In recent years, the CCI has investigated alleged anti-competitive conduct involving digital platforms, e-commerce marketplaces, technology firms and manufacturing industries. The regulator has also imposed remedies in major merger cases, including conditions attached to large media and telecommunications transactions, reflecting its growing role in overseeing market structure and competition policy.

India’s competition framework has undergone significant changes since amendments to the Competition Act were enacted in 2023, introducing provisions such as deal-value thresholds for mergers and settlement mechanisms intended to strengthen enforcement capabilities and adapt regulatory oversight to evolving market dynamics.

Despite the dismissal of the present complaint, the CCI’s order reiterates the evidentiary standards required for antitrust investigations, emphasizing that allegations of cartelisation, abuse of dominance or market manipulation must be supported by concrete facts and sector-specific evidence before a formal inquiry can be initiated.

Source: Outlook Business