MP for Raichur G. Kumar Naik has urged the Union government and the Competition Commission of India (CCI) to undertake periodic market studies in strategically important sectors to prevent excessive market concentration and safeguard consumer interests, employment and micro, small and medium enterprises (MSMEs).
In a statement issued on Monday, Mr. Naik said that, in response to a question raised by him in Parliament, the government had informed him that while the CCI had conducted a comprehensive market study of the telecom sector during 2020-21, it had not undertaken a similar sector-wide study of concentration or oligopolistic trends in the cement industry.
Mr. Naik said both telecom and cement sectors had witnessed significant consolidation over the years. “While the telecom sector had shrunk from more than 13 mobile operators to four major players following mergers and market exits, the cement industry had also become increasingly concentrated, with UltraTech Cement and the Adani Group accounting for a substantial market share in several regions,” he said.
According to the government’s reply, Mr. Naik noted, the CCI had examined 29 merger cases in the telecom sector and 15 in the cement sector during the past decade, besides ordering investigations and passing enforcement orders.
“The telecom market study had concluded that the existing level of vertical integration was generally perceived by stakeholders as pro-competitive and not posing any immediate competition concerns,” he said.
Mr. Naik, however, contended that consolidation in the telecom sector had affected employment, public finances and consumers. Citing reports, he said the disruption in the sector had led to job losses, mounting debt in the industry and concerns over rising tariffs and service quality. He also cautioned that increasing vertical integration across production, logistics, distribution and retail could make it difficult for smaller firms to compete as critical infrastructure and supply chains came under the control of a few dominant players.
Stating that reactive, case-by-case scrutiny was insufficient to address the risks posed by market concentration, Mr. Naik called upon the government and the CCI to institutionalise periodic market studies in key sectors, including cement. He said competition policy should proactively protect consumers, preserve jobs and ensure a level playing field for the MSMEs and smaller enterprises.
Published – July 21, 2026 05:42 pm IST
