Parliament Question: Market Study by Competition Commission of India

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 222 ANSWERED ON MONDAY, July 20, 2026/ ASHADHA 29, 1948 (SAKA) MARKET STUDY BY COMPETITION COMMISSION OF INDIA QUESTION 222 Shri G Kumar Naik: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) whether the Competition Commission of India has conducted any study on market concentration or oligopolistic tendencies in the telecom services, cement manufacturing, if so, the details thereof; (b) the details of the concentration indicators, including market shares, Herfindahl-Hirschman Index (HHI) or any other competition metrics, examined by the CCI in the above sectors during the last ten years; (c) whether the CCI has identified concerns relating to abuse of dominance, collusive conduct, barriers to entry or vertical integration in these sectors, if so, the details thereof; (d) the number of investigations, merger approvals and enforcement actions undertaken by the CCI in these sectors during the last ten years; and (e) the policy measures proposed to preserve competition and prevent excessive market concentration in these sectors? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGWAYS. (SHRI HARSH MALHOTRA) ***** (a)& (b) Market studies are undertaken by the Competition Commission of India (CCI) to assess market structures, business practices, and competition issues across various sectors. In this regard, CCI conducted a Market Study on the Telecom Sector in India during 2020– 21 (“Telecom Study”). The objective of the Study was to assess the 1level of concentration and competition in the telecom sector, highlight changes in competition strategies, analyse the dynamics of competition and cooperation between telecom services and related industries such as over-the-top (OTT) services, tower companies and infrastructure providers, and finally, examine regulations and policy developments from a competition standpoint. No sector-wide market study specifically concerning concentration or oligopolistic tendencies in the cement manufacturing sector has been conducted by the Commission. However, competition concerns in the cement sector have been examined by the Commission under the enforcement and combination provisions of the Competition Act, 2002 (“Act”). In assessing combinations involving the telecom and cement sectors, the Commission considers the factors specified under Section 20(4) of the Act. These include, inter alia, the parties’ market shares and the degree of concentration in the relevant market. The Herfindahl– Hirschman Index (“HHI”) is also used, wherever appropriate, as one of the analytical tools for assessing market concentration. Such indicators are considered alongside the specific facts and market conditions of each case. (c) : The Market Study on the Telecom Sector in India highlights competition concerns relating to barriers to entry arising from high spectrum costs and data-driven network effects, and observes that competition issues arising from digital markets, data leverage, privacy, and vertical integration require case-by-case assessment under the Competition Act, 2002. The study does not record any specific finding of collusive conduct and notes that existing vertical integration was generally viewed by stakeholders as pro-competitive and not posing any imminent competition concern. (d) During the last 10 years, the Competition Commission of India (CCI) has decided 29 combination cases in the telecom sector and 15 combination cases in the cement sector. During the same period, the CCI directed investigations in 3 cases relating to the telecom sector and 4 cases relating to the cement sector. CCI has also passed final orders in 6 cases each relating to the telecom and cement sectors during this period. 2(e) The Market Study on the Telecom Sector in India contains observations aimed at preserving competition, including promoting competition based on both price and non-price parameters such as quality of service (QoS), data 0speeds and bundled offerings; upholding the principles of net neutrality; facilitating transparent traffic management practices; encouraging infrastructure sharing and unbundling of infrastructure and services; assessing vertical integration and multi-sided markets, and strengthening inter- regulatory consultation. ***** 3