A month after telecom regulator Trai issued norms on predatory pricing, competition watchdog CCI today said current market conditions do not warrant "regulatory intervention" to curb such practices.
The comments assume significance as certain sections in the telecom industry are not happy with the decision of Trai, wherein telcos could be fined up to Rs 50 lakh per service area in case their rates are found to be predatory in nature.
In his first comments on the Trai norms, Competition Commission of India (CCI) Chairman D K Sikri said, "We don't find that the current market conditions warrant a regulatory intervention to curb predatory pricing of significant market players".
Last month, the Telecom Regulatory Authority of India (Trai) came out with new rules amid allegations by established players like Bharti Airtel, Vodafone and Idea Cellular that Reliance Jio is indulging in predatory pricing ways.
Describing it as a very sensitive subject, Sikri said the issue is with regard to predation by the significant market player.
"Our sense is that it is a standard tool and available to the regulator at any point of time. In economics, they call it text book regulation, not something that you really need to revise.
"What is the issue is the timing of the order. We don't find that the current market conditions warrant a regulatory intervention to curb predatory pricing of significant market players," he told reporters here.
Sikri also noted that there are no significant market players who are indulging in predatory pricing. "It is a regulation available, it is a text book regulation. The regulator can always use it but you are not sure whether the timing is appropriate," he added.
The CCI keeps a tab on unfair business practices across sectors.
The predatory pricing rules of Trai have sparked off a furore in the industry with the older and established telecom carriers as well as industry body COAI slamming the new norms.
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