From aviation to digital markets: why tighter regulation is needed to curb duopolies

The recent disruption India’s aviation sector due to IndiGo's crew shortage has thrown up questions about the concentration of powers in the hands of a few in the market across sectors. India’s domestic aviation market is heavily concentrated. IndiGo and Air India together control close to 90 per cent of passenger traffic. Passengers were left without a backup when IndiGo faced a massive staff shortage, after the Directorate General of Civil Aviation (DGCA) implemented new rest and duty norms for the crew.  This is not unique to aviation. Across India’s economy, several sectors have quietly settled into duopolies. In telecom, Bharti Airtel and Reliance Jio dominate the market. Vodafone Idea and state-run BSNL struggle to stay competitive. In the digital economy, Amazon and Flipkart domiante the e-commerce sector, while, Uber and Ola lead ride-hailing. Zomato and Swiggy dominate food delivery sector. PhonePe and Google Pay command digital payments. Similar concentration exists in cement, steel, automobiles and other core industries. 2025 Nobel economic laurates Philippe Aghion and Peter Howitt studied how companies invest in R&D to get patents to gain an advantage in the market. Their theory helps understanding how societies needs to support R&D to support economic growth. Power concentration is happens with innovation and the ability to raise investments. But concentration becomes a concern when it reduces consumer choice, weakens labour protections, or creates companies considered too big to fail. The IndiGo disruption has reignited that debate. As markets grow more concentrated, the key question remains — at what point should regulation step in to protect competition, workers and consumers? Guest: Rahul Singh, Associate Professor of Law, National Law School of India University Host: Nivedita V Edited and produced by Jude Weston Learn more about your ad choices. Visit megaphone.fm/adchoices