IndiGo Faces Fresh Trouble as CCI Considers Probe into Possible Abuse of Market Dominance

India’s largest airline, IndiGo, continues to grapple with mounting challenges. After being forced to cut 10% of its flights and cancelling more than 5,000 services in recent weeks, the carrier may now face a formal investigation by the Competition Commission of India (CCI). The inquiry would examine whether IndiGo violated monopoly regulations and misused its dominant market position.

According to a senior government official quoted in an Economic Times report, there is a “strong case” for a CCI investigation. The official noted that while the DGCA will continue to lead the broader government review into the airline’s operational crisis, the CCI is closely monitoring issues that fall under its jurisdiction, particularly allegations of restrictive practices and unfair conditions imposed on passengers.

IndiGo currently controls nearly 65% of India’s domestic aviation market, making it the most influential player in the sector. The CCI did not respond to queries regarding a potential probe.

What the CCI Will Examine

Under Section 4 of the Competition Act, a company holding dominant market power is prohibited from abusing that position. Abuse may include:

• Imposing unfair or discriminatory conditions on the sale of goods or services
• Limiting production or restricting the supply of services
• Forcing consumers to accept unjust or unreasonable terms

The law empowers the CCI to initiate action suo motu, based on complaints from stakeholders or information from state and central governments.

If the CCI finds prima facie evidence of anti-competitive conduct, it can direct its Director General to launch a full investigation and submit a detailed report. If no such evidence is found, the case is closed at the preliminary stage.

Not IndiGo’s First Brush with the Regulator

This isn’t the first time IndiGo has come under the CCI’s scanner. The airline previously faced allegations of anti-competitive behaviour, though those complaints were dismissed after examination.

However, the latest crisis—marked by mass cancellations, operational breakdowns and soaring airfares across the industry—has amplified concerns about whether IndiGo’s overwhelming market share has contributed to consumer harm.

With multiple agencies now examining the issue and public scrutiny intensifying, the coming weeks may bring yet another regulatory setback for the embattled carrier.

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