Parliament Question: Duopoly Dominance and Anti-Competitive Practices in Key Sectors

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 3805 ANSWERED ON MONDAY, MARCH 16, 2025/ PHALGUNA 25, 1947 (SAKA) DUOPOLY DOMINANCE AND ANTI-COMPETITIVE PRACTICES IN KEY SECTORS QUESTION 3805. Shri Manish Tewari : Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) whether the Government has taken note of the increasing concentration of market share in key sectors such as aviation, digital payments, food delivery and e-commerce, where two dominant players control a substantial portion of the market, if so, the details thereof; (b) whether any assessment has been carried out by the Government or the Competition Commission of India (CCI) regarding the impact of such duopolistic structures on competition, consumer choice, pricing and innovation, if so, the details thereof; (c) whether Government has taken cognisance of recent incidents in the aviation sector, including the IndiGo disruptions and allegations of abuse of dominant position, if so, the action taken thereon; (d) the details of investigations or inquiries initiated by the CCI into anti- competitive practices or abuse of dominance in such sectors during the last three years; and (e) the steps taken or proposed to strengthen competition enforcement, prevent excessive market concentration and safeguard consumer interests? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS. (SHRI HARSH MALHOTRA) (a): The Competition Commission of India (CCI) was established by the Competition Act, 2002 (Act) to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto. Upon receipt of Information(s) or Reference(s) alleging anti-competitive practices or abuse of dominant position in contravention of the provisions of the Act, theCommission examines the matter and, where a prima facie case is found to exist, orders an investigation by the Director General. Under Section 4 (i.e. abuse of dominant position) of the Act, in Kartikeya Rawal vs. InterGlobe Aviation Limited, Case No. 44 of 2025, the Commission vide order dated 04.02.2026, directed the Director General to conduct an investigation under Section 26(1) of the Act. (b): Ministry of Corporate Affairs and CCI have not conducted such a specific assessment. However, CCI conducts market studies from time to time to develop a better understanding of competitive conditions across sectors. (c) & (d): The Competition Commission of India has ordered an investigation against InterGlobe Aviation Limited (IndiGo) based on information received for alleged abuse of dominance by IndiGo. Further, as per information received from Ministry of Civil Aviation (MoCA), during the operational disruptions in India in early December 2025, to protect passenger interests, MoCA imposed a temporary cap on airfares to prevent overcharging following flight cancellations and demand surge, which resulted in moderation of fares on affected routes. Airlines were directed to strictly adhere to revised fare structures, process refunds for cancelled or severely delayed flights within stipulated timelines, and allow rescheduling without any additional charges. A four-member committee was constituted by DGCA to investigate the disruptions. Subsequently, enforcement action was taken against M/s IndiGo, including a penalty of Rs 22.2 crore and a 10% reduction in the approved flight network, with the freed-up flights redistributed to other operators. (e): The Competition (Amendment) Act, 2023 introduced a number of reforms to the Competition Act, 2002 with the objective of strengthening competition enforcement and addressing emerging market realities, including those arising in digital and technology-driven sectors. In order to strengthen the competition enforcement, the amendments, inter alia, broaden the scope of anti-competitive agreements, introducing a ₹2,000 crore Deal Value Threshold along with the Substantial Business Operations in India (SBOI) criterion to capture high-value digital market transactions that previously were not within the purview and ‘global’ turnover based proportional penalties etc. The amendment also broadens the scope of Section 3, which governs anti-competitive agreements, by enabling the inclusion of ‘any other’ categories of agreement within its ambit. As per Competition Act, 2002, the Commission may, inter alia, where a contravention is established, pass appropriate orders under Section 27 of the Competition Act, 2002, including directions to cease-and-desist such conduct and the imposition of monetary penalties. *****