It reasoned that the rivals’ existing position would cause abuse, whereas, Jio being a new entrant was inept to abuse (predation). It permitted Jio to continue with its low pricing but barred its rivals to reduce their current prices to tackle competition. In 2018, TRAI amended the predatory pricing rule which caused a disruption in the market, especially for the rivals of Jio. Even when they started charging for their services, it was still a fraction of what its rivals (Airtel, Vodafone and Idea) were charging. ![]() Consequently it generated a gargantuan shift in the consumer base. Jio made its mark on the telecommunication market when it started providing free data and voice services in 2016. It remains a gray area and has demonstrated potential to renovate the competition law scenario in India.Ĭontroversial Pro-Penetration Stand of TRAIĪn interesting perspective can be extracted from Telecom Regulatory Authority of India’s (TRAI’s) ruling concerning the predatory price allegation on Jio. The spotlight of our attention should be focused on a particular phase ‘penetration’ and its relation and position with Indian Competition Law. This portrays the beginning of a new era for Indian competition law, where a revolutionary pricing strategy was applied which provided the consumers utopian incentives. They were on thin ice, where a single characterization of dominance demarcated them from being penalized for anti-competitive behavior. However, their zero pricing strategy was declared predatory and anti-competitive. ![]() They successfully penetrated the market within a year. ![]() For the first time in India, humongous investments were done and a new entrant penetrated the telecommunication market which was held tightly by few incumbents. Even in 2018 and now in 2019, it is charging nominal rates to provide high speed data and voice which instigated the Indian digital revolution. Next, it introduced ‘Happy new year offer’ which extended the previous plan till 31 March, 2017. On 5th September, 2016 Reliance Jio Infocomm Limited(RJIL) (hereinafter referred as ‘Jio’) released its free data and voice scheme ‘Jio welcome offer’ which was further extended till December. Jio’s Onslaught of the Indian Telecommunication Market
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