The Reliance Jio, Facebook deal: Opinion

Fresh investment from abroad in the Indian economy is welcome, but when in a form that could potentially erode existing economic activity and create a concentrated business that may impact consumer interest, the picture changes. There are several concerns with the $5.7 billion investment by Facebook to buy a 9.99% stake in Jio Platforms, a subsidiary of Reliance Industries Ltd and part of the group’s ventures into telecom and digital businesses. Facebook controls the social media platforms Facebook and Instagram and the messaging platform WhatsApp that’s also attempting to foray into payments. Jio is a major provider of digital access.

Their combination spawns a number of potential conflicts of interest that could make fair competition difficult in related fields. While, in theory, India is committed to net neutrality, there are few institutional mechanisms to enforce the principle that access providers shall not enhance or degrade access for certain content platforms.