While entrepreneurship is to be encouraged in any economy, facilitating monopolistic trends can be harmful not merely for consumers using the concerned products or services but also for other stakeholders operating in the particular ecosystem. The absence of competition, in any sector, is unhealthy, and it is the responsibility of sector regulators to ensure there are enough players in the space and that there is a level playing field.
Again, the regulator must regulate fairly else the troubles of smaller stakeholders and consumers could be compounded; going by past evidence, few regulators in India have done much to encourage competition or to take action against those abusing their dominant positions.
