InterGlobe Aviation Faces CCI Probe: IndiGo's Turbulence Amid Unfair Practice Allegations
Shares of InterGlobe Aviation, IndiGo's parent company, fell nearly 1% after the Competition Commission initiated a probe into alleged unfair business practices. The investigation follows IndiGo's cancellation of numerous flights, potentially abusing its market dominance and leading to consumer hardships.
- Country:
- India
On Thursday, shares of InterGlobe Aviation closed nearly 1% lower after the Competition Commission of India (CCI) launched an investigation into alleged unfair business practices by IndiGo.
IndiGo's stock, parented by InterGlobe, experienced a 3.65% drop to Rs 4,782.45 on the BSE before ending at Rs 4,933.95, down 0.60%. At the NSE, it declined by 0.57% to Rs 4,932.20. The CCI's probe comes after massive flight cancellations that caused passenger distress and possible market manipulation.
The CCI, in a detailed 16-page order, cited the potential abuse of IndiGo's dominant market position, limiting consumer access by creating artificial scarcity during peak periods. This alleged conduct could violate Section 4 of the Competition Act, prompting a comprehensive investigation.
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