InstaAstro Technology Private Limited Vs Astrotalk Services Private Limited (Competition Commission of India)
The Competition Commission of India (CCI) addressed a complaint filed by InstaAstro Technology Pvt. Ltd. against Astrotalk Services Pvt. Ltd. under Section 19(1)(a) of the Competition Act, 2002, alleging violations under Sections 3 and 4. InstaAstro, an app-based platform offering astrology services, accused Astrotalk of poaching its consultants by offering them higher remuneration, thereby reducing competition in the market. The informant claimed that Astrotalk’s actions, including inducing consultants to breach contracts and spreading false rumors, had harmed its business by poaching skilled astrologers and consultants.
However, the CCI found that the allegations related to poaching and remuneration issues fell under contract law and not competition law, as consultants are free to offer their services to any platform. Moreover, the CCI did not find sufficient evidence to support claims of dominance by Astrotalk in the relevant market, which was identified as the provision of astrology services through online platforms in India. Despite claims from Astrotalk’s CEO of holding an 80% market share, the CCI noted that there were multiple competing platforms in the market, and dominance could not be established based solely on media statements. Consequently, the CCI closed the matter, ruling that no contravention of Sections 3 and 4 occurred, and rejected the request for reliefs.
