IndiGo Under Investigation: Allegations of Market Manipulation

IndiGo is facing a probe by the Competition Commission of India for potentially unfair practices after cancelling thousands of flights, affecting over 300,000 passengers. The investigation will assess whether IndiGo's actions caused an artificial scarcity and limited consumer access, violating Section 4 of the Competition Act.

The Competition Commission of India ordered a thorough investigation into IndiGo on Wednesday, suspecting it of engaging in unfair business practices. This follows the airline's mass cancellation of flights, which occurred just over two months ago, causing significant disruptions in the market.

In a 16-page ruling, the CCI highlighted that IndiGo's action of cancelling a large number of flights led to an artificial scarcity in air travel services. The regulator noted that such behavior during a period of peak demand possibly limited consumer access to flight options.

Given the airline's dominant market position, the CCI expressed concern that IndiGo's actions might infringe upon Section 4(2)(b)(i) of the Competition Act, which addresses the abuse of dominance. As a result, the CCI has tasked its Director General with conducting a detailed examination into the matter.