Affirming Free Market Principles, Supreme Court Rejects Plea to Regulate Internet Prices
If you are alleging cartelisation, then go to the Competition Commission of India,” the Apex court advised.
The Supreme Court of India has dismissed a Public Interest Litigation (PIL) seeking government regulation of Internet prices, reinforcing the country’s commitment to a free market in the telecommunications sector. The decision, came from a bench led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, who emphasised the availability of multiple service providers and consumer choice as key pillars of the current system.
The PIL, filed by an individual named Rajat, argued for standardised Internet pricing, alleging that a significant portion of the market, up to 80 per cent, was dominated by Reliance Jio, potentially limiting competition and inflating costs for consumers. Rajat’s petition named the Department of Telecommunications (DoT), the Telecom Regulatory Authority of India (TRAI), Reliance Jio, and Bharti Airtel as respondents, urging judicial intervention to address what he described as an uneven playing field.
However, the Supreme Court declined to intervene, with CJI Khanna stating, “It’s a free market. There are several options. BSNL and MTNL are also giving you Internet.” The bench pointed to state-owned providers such as Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) alongside private giants as evidence of a competitive landscape. Addressing the petitioner’s concerns about market dominance, the court suggested an alternative route: “If you are alleging cartelisation, then go to the Competition Commission of India.”
The ruling has sparked mixed reactions. Supporters of the decision argue that regulating Internet prices could stifle innovation and investment in India’s rapidly growing digital infrastructure. They highlight how competition among providers such as Jio, Airtel, and Vodafone Idea has driven down data costs significantly over the past decade, making India one of the cheapest markets for mobile Internet globally. Critics, however, contend that unchecked market dominance by a few players could eventually harm consumers, especially in rural areas where options remain limited.
The court clarified that while it would not entertain the plea, the petitioner was free to pursue other statutory remedies, such as approaching the Competition Commission of India (CCI) to investigate potential anti-competitive practices. This leaves the door open for further scrutiny of the telecom sector, though no immediate regulatory changes are on the horizon.
The decision comes at a time when India’s telecom industry is navigating a delicate balance between affordability, profitability, and technological advancement. With 5G rollouts accelerating and data consumption soaring, the Supreme Court’s stance underscores a preference for market-driven solutions over government oversight in shaping the future of Internet access in the country.
