IndiGo under CCI lens for alleged exploitative pricing after mass flight cancellations

The Competition Commission of India (CCI) has sought information from IndiGo Airlines as part of an ongoing probe triggered by allegations of abuse of dominance, Business Standard has reported, citing sources familiar with the matter.

The inquiry is expected to examine whether the airline engaged in exploitative practices that may have caused widespread consumer inconvenience, particularly through steep fare increases following recent flight disruptions, the report said. Under the Competition Act, abuse of dominance can take the form of exclusionary or exploitative conduct, with the IndiGo case likely to focus on the latter.

A consumer complaint submitted to the regulator described a personal experience of having to book a ticket at nearly two-and-a-half times the original fare after flights were cancelled, Business Standard noted. While the informant's experience forms part of the information received, the CCI's assessment will centre on broader consumer impact rather than an isolated case.

"If the company is restricting supply and subsequently raising prices, it becomes an issue under Section 4 of the Competition Act," sources told Business Standard. Section 4 prohibits the abuse of a dominant market position. While the law does not bar dominance itself, exploiting such a position through unfair or predatory pricing can invite penalties from the Commission.