Reliance Jio could be sued under Competition Act, 2002 for "Predatory Pricing" policy?
Guys, what's your analysis says?
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Competition act v/s reliance jio
Replies (2)
Reliance can be sued for predatory pricing only if we can prove that their prices charged for public are lower than the cost incurred for providing such services.
At the initial stage, they are providing services at free of cost, which could be considered pricing lower than the cost.
This strategy will create the monopoly of Jio in the market, due to this the small player will be eliminated thereby reducing the competitors and some player will opt for the combination or merger.
Overall we can say consumer will be benefited but the market may be hampered. Looking at the benefit of consumers, Jio may succeed in sue.
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