The recent proposals of TRAI for allowing mergers and acquisitions in such a way as to allow maximum market share of 35% to the merged entity without any approval and to the extent of 60% with approval, is anti-competitive and monopolistic. It means Airtel at present having 20% market share can acquire any company with 15% market share so that it gains control on 35% of the market share, without any approval, and with approval, it can gain market share of 60%. This is atrocious. The AT&T Company of USA having market share of 27% in mobile services came to an agreement to acquire another mobile services company T-Mobile so that the combined entity will have 44% market share. The US Department of Justice filed a suit in the Washington DC District Court against this on the ground that it will lead to “higher prices, poorer quality of services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their every day lives”. In such case how in India the merger and acquisitions can be allowed to lead to monopolistic control of 30 to 60% of the market share in telecom sector? The Government should not agree for this and should ensure fair competition by ensuring that no company will have a market share of more than 20% .
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