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19 Dec 2025·Source: The Indian Express
2 min
EconomyPolity & GovernancePolity & GovernanceNEWS

IndiGo Faces CCI Scrutiny Over Alleged Anti-Competitive Practices

IndiGo is under CCI investigation for potential anti-competitive behavior following disruptions.

IndiGo Faces CCI Scrutiny Over Alleged Anti-Competitive Practices

Photo by Melyna Valle

IndiGo, India's largest airline, is facing scrutiny from the Competition Commission of India (CCI) following widespread operational disruptions, including flight cancellations and delays. The CCI has initiated a preliminary investigation to determine if IndiGo's actions, particularly its alleged refusal to refund passengers or provide alternative flights, constitute an abuse of dominant position or anti-competitive practices. This investigation underscores the CCI's role in ensuring fair competition and protecting consumer interests in essential services like air travel, especially given IndiGo's significant market share.

Key Facts

1.

IndiGo (India's largest airline) under CCI scanner

2.

Investigation initiated due to operational disruptions (cancellations, delays)

3.

CCI examining potential abuse of dominant position or anti-competitive practices

UPSC Exam Angles

1.

Role and functions of the Competition Commission of India (CCI)

2.

Provisions of the Competition Act, 2002, particularly 'abuse of dominant position' and 'anti-competitive agreements'

3.

Distinction between statutory, constitutional, and regulatory bodies in India

4.

Consumer protection mechanisms and their interplay with competition law

5.

Economic concepts related to market structures, dominance, and competition policy

Visual Insights

More Information

Background

The concept of competition law in India evolved from the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, which focused on curbing monopolies. Post-liberalization, with the opening of the Indian economy, the need for a more modern competition law was felt to promote competition and prevent anti-competitive practices. This led to the enactment of the Competition Act, 2002, and the establishment of the Competition Commission of India (CCI).

Latest Developments

IndiGo, India's largest airline, is currently under preliminary investigation by the Competition Commission of India (CCI). The investigation stems from numerous complaints regarding operational disruptions, including flight cancellations and delays, and the airline's alleged refusal to provide refunds or alternative flights to affected passengers. The CCI is examining whether these actions constitute an 'abuse of dominant position' or other anti-competitive practices, given IndiGo's significant market share in the Indian aviation sector.

Practice Questions (MCQs)

1. With reference to the Competition Commission of India (CCI), consider the following statements: 1. It is a statutory body established under the Competition Act, 2002. 2. Its primary objective is to prevent practices having an adverse effect on competition and to promote and sustain competition in markets. 3. It has the power to inquire into anti-competitive agreements and abuse of dominant position suo motu or on receipt of information. 4. Appeals against the orders of the CCI lie directly with the Supreme Court of India. Which of the statements given above is/are correct?

  • A.1, 2 and 3 only
  • B.2 and 4 only
  • C.1, 3 and 4 only
  • D.1, 2, 3 and 4
Show Answer

Answer: A

Statement 1 is correct: The CCI is a statutory body established under Section 7 of the Competition Act, 2002. Statement 2 is correct: As per the Preamble of the Competition Act, 2002, its objective is to prevent practices having an adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade. Statement 3 is correct: Section 19 of the Competition Act, 2002, empowers the CCI to inquire into anti-competitive agreements and abuse of dominant position either on its own motion (suo motu), or on receipt of information from any person, consumer association or trade association, or on a reference from the Central Government or a State Government. Statement 4 is incorrect: Appeals against the orders of the CCI lie with the National Company Law Appellate Tribunal (NCLAT), not directly with the Supreme Court. Only after NCLAT's decision can an appeal be made to the Supreme Court.

2. In the context of the Competition Act, 2002, which of the following actions by a dominant enterprise would most likely constitute an 'abuse of dominant position'?

  • A.Offering discounts to attract new customers in a competitive market.
  • B.Setting prices below cost to eliminate competitors, with the intent to raise prices later.
  • C.Investing heavily in research and development to innovate new products.
  • D.Acquiring a smaller competitor to expand market share, subject to CCI approval.
Show Answer

Answer: B

The Competition Act, 2002, prohibits the abuse of dominant position. Section 4 of the Act lists various instances of abuse. Option A is generally a healthy competitive practice, not an abuse. Option B describes 'predatory pricing', which is explicitly listed as an abuse of dominant position under Section 4(2)(a)(ii) of the Act. It involves a dominant enterprise selling goods or services at a price below cost to eliminate competition, with the intention of recouping losses by raising prices once competitors are driven out. Option C is a pro-competitive action that benefits consumers through innovation. Option D refers to 'combinations' (mergers and acquisitions), which require CCI approval to ensure they do not cause an appreciable adverse effect on competition, but the act of acquisition itself (if approved) is not an abuse of dominant position.

3. Consider the following pairs of regulatory bodies and their respective sectors: List-I (Regulatory Body) List-II (Sector) 1. Competition Commission of India (CCI) : Telecommunications 2. Securities and Exchange Board of India (SEBI) : Capital Markets 3. Insurance Regulatory and Development Authority of India (IRDAI) : Banking 4. Pension Fund Regulatory and Development Authority (PFRDA) : Pension Funds How many of the pairs given above are correctly matched?

  • A.Only one pair
  • B.Only two pairs
  • C.Only three pairs
  • D.All four pairs
Show Answer

Answer: B

Pair 1 is incorrectly matched: The Competition Commission of India (CCI) regulates competition across all sectors of the economy, not specifically telecommunications. Telecommunications is primarily regulated by the Telecom Regulatory Authority of India (TRAI). Pair 2 is correctly matched: The Securities and Exchange Board of India (SEBI) is the regulator for the securities market (capital markets) in India. Pair 3 is incorrectly matched: The Insurance Regulatory and Development Authority of India (IRDAI) regulates the insurance sector, not banking. Banking is primarily regulated by the Reserve Bank of India (RBI). Pair 4 is correctly matched: The Pension Fund Regulatory and Development Authority (PFRDA) regulates and promotes the pension sector in India. Therefore, only two pairs (2 and 4) are correctly matched.

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