jio and facebook case study

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Jio and Facebook: Adding Value through an Alliance

By: Prashant Salwan, Shailesh Pandey, Srinivasan R Iyengar

In April 2020, Reliance Jio Infocomm Limited (Jio), a subsidiary of Reliance Industries Limited, announced an alliance with social media giant Facebook Inc. (Facebook). This was the biggest foreign…

• Length: 16 page(s)
• Publication Date: Feb 16, 2021
• Discipline: Strategy
• Product #: W21044-PDF-ENG

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In April 2020, Reliance Jio Infocomm Limited (Jio), a subsidiary of Reliance Industries Limited, announced an alliance with social media giant Facebook Inc. (Facebook). This was the biggest foreign direct investment for a technology firm in India. The association between Jio and Facebook offered both firms many opportunities, and the strengths and core competencies of the two organizations promised to create value for Indian consumers and businesses by meeting their technology needs. However, the differences in the two organizations in terms of culture, expertise, business models, and management styles would need to be dealt with effectively to create the desired synergy. How could Jio ensure a co-operative and complementary partnership (despite their differences with Facebook) in order to succeed and set a precedent for future international alliances?

Prashant Salwan is affiliated with Indian Institute of Management Indore. Shailesh Pandey is affiliated with University of Pune. Srinivasan R Iyengar is affiliated with Jamnalal Bajaj Institute of Management Studies.

Learning Objectives

This case is suitable for undergraduate- and graduate-level courses on strategic management or international business. The case helps students to gain an understanding of international strategic alliances as a business growth strategy. This case is also suitable for helping students in management development programs to understand strategy. After working through the case and assignment questions, students will be able to do the following: Explain how value is created through strategic alliances. Decode strategic alliances between technology. companies operating in developed and emerging economies. Describe the intricacies of international growth strategies. Outline the significance of international strategic alliances. Determine an appropriate framework for international strategic alliances and partnerships.

Feb 16, 2021

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W21044-PDF-ENG

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Explained: What the Jio deal means for Reliance and Facebook

Facebook’s purchase of nearly 10% stake in jio marks its entry in india, improves reliance’s balance sheet, allows each company to gain from the other’s reach..

Facebook’s purchase of a nearly 10% stake in Reliance Industries’ digital business unit Jio Platforms brings one of the world’s largest Internet companies on the table with India’s largest telecom player. The $5.7-billion deal, which values Reliance’s digital operations at around $66 billion, pushes the Indian conglomerate ahead in its plans of de-leveraging its balance sheet while accelerating the launch of its new commerce business .

Further, it not only marks Facebook ’s long-pending formal entry into India’s telecom sector but also catapults it to a place among the biggest foreign investors in India’s technology space.

Read news in Tamil ,  Malayalam ,  Bangla

What does the deal mean for Reliance Industries?

Back in August 2019, while addressing the company’s shareholders at the annual general meeting, Reliance Industries Chairman Mukesh Ambani had said the group had prepared a roadmap for becoming a zero net-debt company within 18 months. The Facebook deal significantly contributes to that plan by paring about Rs 43,574 crore from its outstanding debt as of September 2019 of Rs 2.92 lakh crore. The other primary contributors to the debt-reduction plan will be a potential $15 billion (around Rs 1.05 lakh crore) deal with Saudi Aramco for a 20% stake in Reliance Industries’ refining and petrochemicals business and Rs 7,000 crore from a 49% sale in its fuel retail joint-venture to British firm BP. However, experts believe the Aramco deal to be under threat on account of the oil prices crash caused by the COVID-19 outbreak.

Also read | After Facebook’s Jio investment booster, RIL in talks with other investors to pare debt

Besides the balance sheet de-leveraging, the timing of the deal with Facebook is significant for another reason: online platforms selling essential goods have suddenly witnessed an upsurge in demand. For example, before the outbreak, just 1% of the Rs 80,000-crore grocery market in India was represented by online players. After the lockdown, online platforms started to account for 50% of the grocery demand in the country by some estimates before it corrected. “We’re one of the few industries that has got more than enough business but not enough resources,” said Hari Menon, CEO of India’s largest online grocer Bigbasket.

Experts have said the arrangement among Reliance Retail, Jio Platforms and Facebook-owned WhatsApp to offer consumers the ability to access the nearest kiranas, or grocery stores, which can provide products and services to their homes by transacting with JioMart using WhatsApp, has come at a very opportune time. WhatsApp boasts 400 million users in India. Further, using WhatsApp’s base also allows Reliance Retail to promote its services to users of Jio’s rival telecom players.

Also read | Reliance-Facebook deal opens up WhatsApp’s entire user base for Mukesh Ambani

What does the deal mean for Facebook?

Facebook has been trying for years to get its finger in the Internet pie. In 2015, it had experimented with Free Basics, which provided free access to basic Internet services as a partnership with service providers. However, criticised for being a walled garden, it soon pulled out of the idea after differential pricing was disallowed by the telecom sector regulator.

It had even looked at the possibility of beaming free Internet from the air using a solar-powered drone called Aquila, and enabled low cost high-speed Wi-Fi in some remote parts of India with an initiative called Express Wi-Fi. But data was expensive in those times, and free access to the Internet was envisioned as the easiest way to bring the next billion users online. Then, Reliance Jio happened. It launched with data rates so low that they became the industry standard in one of the largest online markets in the world. Jio alone helped bring 388 million users online, well over a third of what Facebook had planned.

The partnership with Reliance could also help Facebook navigate the regulatory environment in India, where it has had several skirmishes with the authorities, including for its major initiatives such as WhatsApp Pay .

The first major non-distress deal during the pandemic is part of the debt-reduction plan of India's biggest corporate entity - and could lead to the accelerated launch of Reliance's e-commerce plans on the JioMart platform, For Facebook, the partnership could help it navigate the regulatory environment, including for initiatives such as WhatsApp Pay.

What does it mean for India’s Internet ecosystem?

The deal also marks Facebook’s entry among elite investors in India’s technology space, joining the likes of SoftBank, Amazon and Google that have together poured in billions of dollars in Indian tech startups and their own ventures over the years. Prior to Jio Platforms, Facebook had invested around $20-25 million in social commerce platform Meesho in 2019, and participated in a $110 million funding round for edu-tech company Unacademy earlier this year.

The deal with Reliance also gives Facebook access to the latter’s bouquet of digital apps. These include in-house apps such as Jio Money, Jio TV, etc in addition to the young startups acquired by Reliance or its subsidiaries across categories such as logistics, e-commerce and artificial intelligence.

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What does it mean for Reliance’s data localisation principles?

In January last year, speaking at the Vibrant Gujarat Summit, Ambani had stressed that India’s data “must be controlled and owned by Indian people – and not by corporates, especially global corporations”. “For India to succeed in this data-driven revolution, we will have to migrate the control and ownership of Indian data back to India – in other words, Indian wealth back to every Indian,” he had said. While some have raised the red flag over Facebook’s track-record on data privacy issues, executives of both companies said Wednesday that data sharing was not a part of the deal. “There will be areas that we will collaborate in but there will be areas where we will potentially not agree with each other,” a Jio official said. Facebook, on the other hand, maintained its stance in favour of an open ecosystem for data to flow across boundaries.

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RECENT POSTS

India's largest tech FDI: Decoding the Facebook-Reliance Jio deal

• Apr 24, 2020, 19:09

The technology sector in India has witnessed its largest foreign direct investment (FDI) as Facebook announced its investment in Jio Platforms, a unit of Reliance Industries (RIL), on April 23, 2020. Facebook plans to invest around Rs 43,574 crore (US$ 5.7 billion) for a 9.99 per cent stake in the company. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore (US$ 66.10 billion) pre-money enterprise value. Through this deal, Facebook has been given an opportunity to expand its presence in the Indian market, which is considered as one of the largest markets in terms of users and has a telecom industry with affordable data plans. The investment in Jio Platforms has increased its investment value and it is now amongst the top five listed companies in India by market capitalisation.

Reliance Jio Infocomm Limited is a wholly owned subsidiary of Jio Platforms. Jio was launched in 2016 and is considered as India’s largest mobile services company by subscriber base. It is the only company in India having an entire network developed on 4G VoLTE (voice over long-term evolution) technology. A world-class digital platform powered by leading technologies such as Broadband connectivity, Smart Devices, Cloud and Edge Computing, Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain has been developed by Jio.

Jio alone has a subscriber base of 388 million, as compared to the combined user base of Instagram, Facebook, and WhatsApp at 700 million. Cumulatively, this will account for user base of around one billion with considerable overlaps.

Reliance Retail, RIL's retail arm, has also partnered with Facebook's WhatsApp, which will permit RIL's e-commerce business users to use the WhatsApp platform. JioMart (business-to-business) ecosystem of RIL, Facebook and WhatsApp have been trying to add small and medium businesses (SMBs) on their respective platforms. They have been trying to get local kirana stores on board to expand their digital retail sector. Users will be able to buy goods and services using WhatsApp and Facebook Messenger. Under this deal, both the companies will look to grow in the hyperlocal commerce. Jio Platform will be able to launch its omni-channel ‘New-Commerce’ strategy where merchants and mom-and-pop stores will be digitalized through Jio point-of-sales machines.   

The focus of Jio will be to provide digital solutions for 60 million micro, small and medium businesses (SMBs), 120 million farmers, 30 million merchants, and millions of small and medium enterprises (SMEs) in the informal sector.

Facebook will be able to expand its platforms including Facebook Marketplace, Instagram Shopping and Facebook Pay. This will aid SMBs to set up virtual shops on such platforms and sell goods and services.

WhatsApp Pay is expected to launched in mid-2020. This may also benefit from Jio’s Payments Bank and can use @jio handle instead of the existing @icici handle. Facebook will be able to get deeper and richer data through the commercial agreement between JioMart and WhatsApp. Consumption patterns will provide detailed insights about “who is consuming what” to “how much is someone spending”. Also, advertising on Facebook is easy, so Jio can also utilise Facebook’s ad platform into its products on a revenue share basis. WhatsApp can be used by Jio as an end-to-end service for business to retailers’ channel.    

Jio will also gain from Facebook’s user analytics-powered targeted advertising, one of the important pillars of Facebook’s business model. Tie-up between the companies will also be focused on making interaction easy for people with a business of their choice. This will help in easy purchase of a product right within a chat. Jio-Reliance Retail has an offline presence while Facebook lacks that, and therefore, both companies can look to lift each other and compete against their competitors across e-commerce, payments, enterprise services and other areas where companies like Google, Amazon, and Flipkart have a strong presence. The online-to-offline (O2O) commerce initiative could potentially change the landscape of retail as Whatsapp has a reach over 400 million customers in India.

The deal between Facebook and Jio Platform will also help customers to buy products from social media. For example, if a customer saw an apparel on Instagram and liked it, he can now feed this data about apparel into Reliance Retail’s inventory, which in turn can inform the customer about its availability and the transaction can be initiated and completed.

Facebook and Jio can also expand their partnership in India’s video streaming market. Both companies have their respective video streaming platforms – Jio has JioMovies in India for its subscribers, whereas, Facebook has its Facebook Watch platform. Facebook Watch has much more user generated content, but Jio has access to movies.

Facebook owns Oculus, which is one of the first companies to develop consumer VR headsets. Jio already bundles its mixed-reality platform and virtual and augmented reality (AR) experiences with its broadband service. With this partnership, Jio’s value proposition can be improved with Oculus.

After the announcement of this deal, Reliance Industries Chairman, Mr Mukesh Ambani became Asia's richest man with a fortune of around US$ 49.2 billion.

The deal is expected to complement Prime Minister Mr Narendra Modi’s ‘Digital India’ Mission with Ease of Living. Thus, an increased penetration of Jio in small towns and cities along with a strong relationship and community bonding on Facebook and Whatsapp will help build a potent user base for this new partnership to flourish.

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India approves Facebook’s $5.7 billion deal with Reliance Jio Platforms

India’s antitrust watchdog has given its blessing to Facebook and Reliance Jio Platforms for their $5.7 billion deal .

In a statement on Wednesday, the Competition Commission of India said it had approved Facebook’s proposed multi-billion-dollar investment in Jio Platforms for a 9.99% stake in the top Indian telecom network.

Jaadhu Holdings LLC, a wholly owned subsidiary of Facebook, is acquiring the stake in Jio Platforms. Facebook created this subsidiary earlier this year.

The announcement comes a week after the watchdog said it was accessing the deal for potential misuse of users’ data and pondering if it should consider amending the current rules for some mergers and acquisitions in the country.

At the time, Facebook had argued that its investment in the Indian firm is “pro-competitive, benefits consumers, kirana stores (neighborhood stores) and other small and micro local Indian businesses, and takes forward the vision of digital India.”

Jio Platforms, run by India’s most valued firm Reliance Industries, is the biggest telecom operator in India with more than 388 million subscribers . The telco has raised $15.2 billion (at the height of the global pandemic) from a roster of high-profile investors, including Silver Lake, KKR and General Atlantic.

Analysts have said that Facebook’s investment in billionaire Mukesh Ambani’s Jio Platforms, its biggest investment in recent years, could help the social media giant expand its reach in India, which is already its biggest market by user count.

Facebook’s eponymous service reaches about 350 million users in India, while its messaging service WhatsApp has  amassed over 400 million users . WhatsApp is by far the most popular service in the world’s second largest market.

In April, Facebook said it planned to work with Reliance Jio Platforms to empower 60 million small businesses, including mom-and-pop stores in India. Early signs of this collaboration were apparent a week later when JioMart, a joint venture between Reliance Jio Platforms and Reliance Retail (India’s largest retail chain), started to allow customers to track shipment through WhatsApp .

Some analysts said the deal with Ambani, India’s richest man and an ally of Indian Prime Minister Narendra Modi, could also help Facebook stay on the good side of the Indian government. In India, where Facebook’s Free Basics program was blocked in early 2016 , the firm has been stuck in a regulatory maze to get clearance for a nationwide rollout of WhatsApp Pay.

Facebook  launched WhatsApp Pay in beta mode  to a million users in the country in 2018, only months after Google launched its payments service in India. While WhatsApp Pay remains stuck at a million users, Google and Walmart’s PhonePe have established clear  dominance in India’s mobile payments market .

Reliance Jio Platforms says $15.2 billion fundraise is good for now

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Analysis of Competition Law Issues in the Facebook-Jio Deal

• Post author By ashwin
• Post date November 24, 2020

By: Abishek TK

Jio – Facebook Crossover: A Financial Entente:

Facebook is one of the only apps used by almost 2.5 Billion users, making the social media platform the world’s largest. While Facebook conquers the world, Whatsapp conquers India with approximately 200 million users, making it the country’s largest. On 21 st April 2020, Facebook CEO, Mark Zuckerberg, told the world that the Facebook was teaming up with Reliance Industries. Facebook had purchased a total of 9.99% stake in the Reliance Industries. The 5.7-billion-dollar deal pushes Reliance Industries ahead in its plans of facilitating the launch of its new commerce business. In 2019, Reliance Industries Chairman Mukesh Ambani had other primary contributors to his debt reduction plan with approximately $15 billion deal with Saudi Aramco for a 20% stake in Reliance Industries’ refining and petrochemicals business and a ₹7000 crore for a 49% sale in its fuel retail joint venture to a British firm BP. Usually, any merger between companies or corporations is a tedious process. Out of some approvals, be it regulatory or otherwise, the most critical one is the approval of Competition Commission of India. In order to complete a deal that crosses the thresholds given under Sec. 5 of the Competition Act, 2002 [1] , the approval by Competition Commission of India is compulsory. Another rule is that, Section 6(2) of the Competition Act, 2002, examined with Regulation 5 of the Combination Regulation confirms a suspensory reign, i.e., the approval must be obtained before the deal is finalized within the United States. Though the deal sounds bold and strong, which it does, can still encounter anti-trust issues. Starting with the multi-billion-dollar investment into Jio will have to be appraised and authorized by means of India’s opposition regulator. For this to happen, the Competition Commission of India will have to go forward and look at the proposed deal and verify that it does not cause appreciable adverse effect on competition within the marketplace. The responsibility of the Competition Commission of India is to analyze now not only the capacity of destructive results on competition how much ever additionally the capability worries it may offer upward rush to. It would be more intriguing and interesting to see if the minority stake purchase in India’s major telecom empire would provide any regulations to Facebook.

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Section 4 of Competition Act, 2002 sets down arrangements identifying with maltreatment of predominance which obviously expresses that a prevailing element ought not utilize its situation of solidarity to make hurt the contenders and customers in the business sectors of the nation. The Competition Act, 2002 in segment 19(4) has set out specific variables which help in deciding if an element is predominant in an applicable market or not. Prior to deciding if the arrangement among Facebook and Jio Platforms can prompt the act of maltreatment of strength by the two substances, it is basic to realize whether Facebook’s WhatsApp pay and Jio Platform’s JioMart are prevailing in their pertinent market or not.

Establishing Dominance:

Jio and Facebook are both emperors in their respective fields. According to the Telecom Regulatory Authority of India, 32% stake is owned by Jio in the 1.15 billion Indian mobile services industry. It possesses the highest number of customer base and revenue-sharing share in the telecom industry. This means, Jio has an overall customer base of 369.93 million, exceeding its rivals, Bharti Airtel and Vodafone- Idea. Regarding Facebook, it basically operated via three platforms- Facebook, Instagram and Whatsapp. As for Whatsapp, it currently has a solid 400 million users in India [2] . These 400 million users are among the 600 million people who get right of entry of internet. A fragment of effectiveness compared to Whatsapp can be seen in applications like Hike, WeChat and Telegram.

JioMart is an online staple help which gives conveyance administrations of basic food item and fundamental things from close by kirana stores of the nation. JioMart right now works in just three spots of the nation for example Navi Mumbai, Thane and Kalyan. The important market of JioMart is by all accounts an online staple conveyance administration. It is appropriate to take note of that JioMart in this market has under 5% piece of the pie and furthermore is another major part in this market. It can influence neither the opposition nor the rivals in the online basic food item administration market of the nation. Subsequently, in the wake of investigating the components referenced in segment 19(4) of the Competition Act, 2002, it tends to be reasoned that JioMart is certainly not a prevailing part in its important market.

Jio is looking forward to revolutionize ‘JioMart’ in order to merge small and medium sized ‘kirana’ businesses. This would firstly enhance mother-pop shops within the domestic and local markets by tying them to the digital platforms. Once this is over, it would try to penetrate another market by utilizing the dominance of Whatsapp. If all these are successful, Whatsapp might allow JioMart to function through the messaging platform itself. If this is carried out in the manner that Whatsapp comes with default JioMart platform, it could cause an abuse of dominance under Section 4(2)(d) as downloading Whatsapp would be the main agreement the JioMart will be kind of a given in itself. The disadvantage in that kind of a strategy is, customers will not be able to use any other embed e-commerce portal on Whatsapp. This will become unfair and cause disturbances in the market as it might leave the customers with no choice but to accept the given deal.

The said deal may have an impact on payment apps due to the establishment of Whatsapp Pay project long-stalled by Facebook. The partnership with Jio will establish the payment service for itself. Once Whatsapp Pay enters the field, industry players like Google Pay, Paytm, and Pay will face a tough competition. People will easily be able to text and pay simultaneously without switching apps. To keep things in balance, the Competition Commission of India will have to consider whether Facebook and Jio would become dominant in the relevant markets, potentially abusing the dominant position in order to monopolize the field using Whatsapp Pay. Since the combined power of Jio and Facebook would make it difficult for any other platform to compete, the CCI should analyze whether it would be likely that any anti-competitive acts by Jio or Facebook would create new monopoly in the other relevant markets.

Appreciable Adverse Effect on Competition:

Determining the resources and market positions of the combines techno-heads is difficult, especially in the technology sector. Google LLC [3] , CCI found that there is a need to now not only depict the standard applicable marketplace but also related to relevant markets which have been anguished by the behavior of the concerned parties. Section 20 (4) lists that factors that the Competition Commission of India should not forget to include if there is any substantial destructive effect on the competition arising from the said combination.

The quintessence of this combination is to check for horizontal or vertical overlaps. If there is no appearance of horizontal overlaps, there is a strong possibility of vertical integration. For example, Jio introduces internet access to smartphones, smartphones with internet can access Whatsapp, which can ultimately be combined with JioMart. Though this is not the ideal vertical integration, but the use of dominant function in a single market to move into a new marketplace would possibly be to have an adverse effect on the natural competition in the ‘physical’ trade market. Strategic investment, when seeks to impale a specific segment by making use of the leverage on their respective fields to arrive at a completely new product, criteria has to be comprehensive in order to check and verify the potential adverse effect on competition, if any. The United States court imposed 5 billion dollars fine on Facebook for violation of privacy is itself a warning on the Indian regulators to intervening in this a way achieving the deal specifically, to protect the Indian Start-Up movement, which is probably an important bulkhead of the Digital India ship.

Platform Neutrality:

Platform Neutrality, as the name proposes, comprises of impartiality toward any item showed on a market. This standard is abused in occurrences of combination, in which the stage holds a double job through acting each as a mediator and a commercial center contender. Since the stage is a pool of customer insights, it offers the owner business endeavor and side to improve its administrations through dominatingly dispensing bogus hunt rankings and serving one-sided pointers sooner than its customers. Courses of action like these outcomes in the special treatment being concurred to the office’s in-living arrangement cloud kitchen brands, building up an irregularity in the reasonable resistance in the pertinent zone.

It is appropriate to take note that the monstrous e-exchange associations, for example, Amazon and Flipkart have constantly been underneath the examination of the Courts for disregarding the stage impartiality strategies. All India Online Vendors Association had blamed each of those organizations for manhandling their strength inside the relevant commercial center by giving special solutions for there to some degree possessed producers. After due examinations concerning this depends, the CCI had unnoticed the cases of them disregarding any popular rivalry standards. Notwithstanding, rehashed charges by the method of equivalent organizations made the NCLAT award a test into this issue again.

Network Effect:

The Network Effect, additionally called network externality, is the increase picked up by method of the officeholder clients while an additional individual joins the gathering. Its utilization is particularly generally far reaching inside the time area in which the enormous network is a bit of leeway to the clients and the got data fills in as a little something extra for its proprietor. Henceforth, there lies no competition inside the truth that having an enormous base of records can bring about an endeavor achieving a prevailing situation inside the market. This predominance, in sure occasions, can go about as an essential for organizations in leading enemy of forceful conduct. The organizations with the guide of keeping up their matchless quality in a solitary pertinent market contribution to each other material market, in this manner mishandling its energy to develop predominant in both those business sectors. Such moves are named as utilizing and are denied underneath Section four(2)(e) of the Competition Act, 2002 (“the Act”).

Carefully predominant associations like Google have utilized their strength in the past, utilizing its got realities to sell its own administrations for example Google Flights, Google Maps, etc. The creators battle that the arrangement whenever did, might be each other case of this type of misuse. As each Facebook and Jio are at prevailing situations in their particular business sectors, they have an unbridled admittance to realities which can be utilized for their own one of a kind business advantage. For example, WhatsApp by means of its settlement with JioMart can assemble a tremendous heap of data at the admission styles of the customers in India, which later can be used for the ad of the JioMart stage through Facebook. Also, if WhatsApp goes to a choice to make Jio Payments Bank on the grounds that the on line UPI-principally based value elective, it’ll achieve Reliance Companies accessing its total client base, which incorporate the records of its adversary telecom partnerships. Each one of those points of interest blended have the capacity of making Jio and its auxiliaries predominant exclusively dependent on the realities that it recognizes associations own, subsequently which remember it for the ambit of utilizing underneath Indian Competition Act.

Deep Discounting:

Deep Discounting, normally named as ruthless evaluating, happens while a monetarily wealthy organization costs its item at a significantly decline charge contrasted with the contrary organizations inside the commercial center. While the partnerships secure such developments as a component of their expansion approach, the overwhelming development inside the reliance of its client’s outcomes in them achieving a place of intensity, unjustly. This can be mounted by method of depending on Section 19(4)(f) of the Act, which offers for ‘buyer reliance’ as one of the justification for evaluating the predominance of an organization. So as to downsize the burden of such enemy of forceful tendencies, such estimating has been described as maltreatment of strength under Section four(2)(a)(ii) of the Act, making it violative of the standards that ensure honest rivalry in the business sectors.

Jio, inside the past, has been blamed for savage valuing for its net administrations. In truth, following this system, it has developed to be one in everything about most significant telecom producers in India. Subsequently, the creators battle that the arrangement has the capacity of monetarily backing the stage to present profound limits for their items, building up a tremendous distinction in the expenses inside the market. This differential valuing by method of drawing in the clients by means of its uncommon decreases can pressure out the contrary e-staple brands inside the relevant commercial center. While these limits may prompt a fast time-frame advantage for its clients, the minimization in their decisions will achieve a drawn out misfortune. JioMart by utilizing sorting out its imposing business model will in the end be equipped for help its expenses unnecessarily, in this way constraining its customers to search for their items at some random charges.

Conclusion:

The objective of Competition Act, 2002 is to guarantee the free progression of exchange and keep the elements from stopping rivalry on the lookout. In the 21st century, the idea of shopper government assistance can’t be deserted in any of the situations. The intensity of the CCI gave by the Competition Act, 2002 is restricted to a degree. Indian Competition Law doesn’t punish endeavor to turn into a prevailing element and this is the greatest downside.

In the current arrangement, Facebook and Jio Platforms through its administrations WhatsApp Pay and JioMart separately will endeavor to get prevailing in their pertinent market by utilizing unscrupulous strategic policies. Notwithstanding, CCI can’t stop such practices because of absence of arrangements in the Competition Act, 2002. The ideal opportunity for a change has shown up and the Indian Legislature should embed such arrangements in the demonstration so as to enable the CCI to manage such unreasonable practices in the nation.

[1] Section 5, Competition Act, 2002.

[2] Manish Singh, WhatsApp reaches 400 million users in India, Tech Crunch, (26.07.2020), https://techcrunch.com/2019/07/26/whatsapp-india-users-400-million/.

[3] Umar Javeed v. Google LLC, Case No. 39 of 2018, dated 16-4-2019.

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Facebook Jio Deal: Everything you need to know

With this piece, we take a look at the interesting Facebook Jio deal that was clocked earlier in 2020. Post this deal, Reliance has gone on to do a lot more deals and if you’re looking to read about Reliance in-depth, check our Reliance case study out. This post only talks about the Facebook Jio deal and what it holds for the future of Reliance. Anyway, let’s jump right into the story.

An eagle’s eye on Facebook Jio deal

While we’re all sitting home, wondering what’s going to happen with the lockdown Jio and Facebook are planning real business. On 22nd April 2020 Facebook owner of three most influential apps – WhatsApp, Instagram, Facebook – in India invested $5.7 billion USD (INR 43,574 cr. – yes keep counting) to purchase 9.99% stake in Reliance Jio . Pushing the valuation of Jio now to $66 Billion!

One might wonder – why Jio? Facebook is a social media network and has good reach in the corners of the country via WhatsApp, Facebook, Instagram – it has 400 million users of WhatsApp, only in India! Which is a pretty good number.

To understand why Jio, we need to understand an initiative that Facebook was planning to implement in India called Free basics.

What was Free basics?

Swift story!

Say Clark (Facebook) wants to start a restaurant named Basek (pun intended – Free basics), in a local area (say India). You know Indian local areas, right? You’d typically have a few dudes selling Vada pav, Pav Bhaji, Pani Puri, Cakes – competitors of Clark. Clark’s restaurant has all these items and he’d decided to give these away for free – but only these items. Obviously, the local dudes would protest against this, since they’d lose all their customers.

But Clark has a plan. He changes the name of the restaurant to “Free Basek for everyone” and the moment that happens, the local dudes are deprived off the customers – I mean, who wouldn’t eat a free Vada Pav? Now, the local dudes close out and right after that– Clark now starts to charge the customers who visit and decides what he wants to sell to them. The customers now cannot return to the local vendors since they’re all closed. Clark now rules the world (well the local area, but why not).

An ambitious plan, eh? Only – it did not work. Do you see what’s wrong here? Facebook was only trying to provide free internet for the apps that were owned by them . This violated the basic tenants of Net neutrality (which in essence means equal access to all the internet websites). And owing to a lot of opposition from the other telecom players – TRAI banned Free Basics in 2016 . Clark retreated only to return again.

The other big thing about 2016:

Do you know what else happened in 2016? Jio happened. Jio entered the market it stormed the already vulnerable telecom players wreaking havoc. A lot of small players died and the big ones combined (Vodafone-Idea). The normalcy has not been achieved even until today – Vodafone-Idea continues to wrangle itself in debt.

Feel any connection?  

Facebook has been trying to enter the Indian Market with its ambitious WhatsApp Pay. But, regardless of how well penetrated WhatsApp is in the market, it would have been tough to compete with the players like Google Pay, Phonepe and Paytm with the government backing and local penetration these apps have. Facebook understands the potential and importance of having a strong network in India. Now, what better network than the richest man of the country himself? From fashion to electricity to telecom – you name it, Reliance is everywhere.

The man has good relations with investors and the Government (Yep, that’s it). What better time to help this man fulfill the promise he made to the investors? (Mukesh Ambani promised that Jio would be debt-free by March 2020, the debt of 40,000 cr and Facebook paid 43,574 Cr!). Too many coincidences, Gah!

What this deal could mean for India?

• Jio-mart: Reliance has been trying to onboard the local Kiranas on their app, that is, a local shop next door where you generally would walk up to buy milk, groceries when your mom yells at you (pre-lockdown) will now deliver the groceries to your doorstep
• WhatsApp Pay: Yep, with this partnership – WhatsApp may get the government’s nod for embedding payments and hence will become a widely used payment system for this wide network of small Kiranas (30,000 stores). WhatsApp pay is poised to be launched somewhere in June and will prove out to be a problem for other UPI apps – especially Paytm that already seems to be on the verge of collapse

All in all, this is no way a simple deal – a lot of changes may happen. One may hypothesize a scenario wherein you’re in the middle of a conversation talking to your friend about buying a trimmer on WhatsApp, the next thing you know there’s an Advertisement of a trimmer popping up. And with the data security problems, Facebook has been into we may be looking at something scary.

But don’t you worry, we’ll keep you posted about what goes on around the time, head here for more .

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How Working with Competitors Made Jio a Telecom Giant

• Vijay Govindarajan,
• Anup Srivastava,
• Mani Venkatesh

What other companies can learn from its success.

Jio Platforms’ unique experiment of co-opetition with global tech giants combined with its local prowess allows it to address an enormous market of price-sensitive customers. Thanks to its sheer scale, innovation, and unique collaborations, it can offer integrated solutions for retail, grocery, fintech, medical, agricultural, e-commerce, and e-payment needs, in addition to telecom services and home entertainment — at affordable prices. The resulting knowledge, access, business possibilities, and even entertainment opportunities could transform the lives of over one billion people in India. In this article, the authors unpack why Jio has been so successful and what lessons we can learn from its evolution.

More than a traditional telecom business, India’s Jio Platforms is proving to be a disruptor. Jio was launched as a “freemium” service, offering free internet services to price-sensitive Indian customers to increase the adoption rate and scale up the market. Previously, Indian customers, whose average income is about $150 per month , had never had access to such a high-speed internet — bundled with so many apps and digital solutions — at such low prices.

• Vijay Govindarajan is the Coxe Distinguished Professor at Dartmouth College’s Tuck School of Business, an executive fellow at Harvard Business School, and faculty partner at the Silicon Valley incubator Mach 49. He is a New York Times and Wall Street Journal bestselling author. His latest book is Fusion Strategy: How Real-Time Data and AI Will Power the Industrial Future . His Harvard Business Review articles “ Engineering Reverse Innovations ” and “ Stop the Innovation Wars ” won McKinsey Awards for best article published in HBR. His HBR articles “ How GE Is Disrupting Itself ” and “ The CEO’s Role in Business Model Reinvention ” are HBR all-time top-50 bestsellers. Follow him on LinkedIn . vgovindarajan
• Anup Srivastava holds Canada Research Chair in Accounting, Decision Making, and Capital Markets and is a full professor at Haskayne School of Business, University of Calgary. In a series of HBR articles, he examines the management implications of digital disruption. He specializes in the valuation and financial reporting challenges of digital companies. Follow Anup on  LinkedIn .
• Mani Venkatesh is the head of the MSc in big data and AI program and is an associate professor in the department of strategy and entrepreneurship at Montpellier Business School (MBS) in France. He possesses over 22 years of academic and industrial experience and served in Fortune 500 companies in various senior management roles for over a decade. His research entails digital transformation strategies and sustainability of new-age enterprises. Follow Mani on LinkedIn .

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Jio and facebook: adding value through an alliance pestel analysis russia ukraine war, pestle analysis of jio and facebook: adding value through an alliance in light of russia ukraine war.

In April 2020, Reliance Jio Infocomm Limited (Jio), a subsidiary of Reliance Industries Limited, announced an alliance with social media giant Facebook Inc. (Facebook). This was the biggest foreign d...

Jio and Facebook: Adding Value through an Alliance case study written by By Prashant Salwan, Shailesh Pandey, Srinivasan R Iyengar, has business operations that directly and indirectly are impacted by Russia Ukraine war. Some of the PESTEL Analysis factors that are impacting the Jio and Facebook: Adding Value through an Alliance business environment are – War in Russia and Ukraine, loss of market opportunities in Russia & Ukraine, high inflation , increasing defence spending , crypto currency frauds and crash , financial collapse in emerging markets , increasing wages and risks of stagflation , end of an era of easy liquidity, big tech shares collapse , high government debts , rising housing debt and increasing mortgage rates, slowing growth rates across the world , and diversification of supply chain because of both Covid and Russia Ukraine war Check out more Harvard Business Review Case Studies Solutions

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Ahir Gopaldas and Anton Siebert (2022 July August) "What You’re Getting Wrong About Customer Journeys", Harvard Business Review , 92 Linda A. Hill, Emily Tedards, and Taran Swan (2021) "Drive Innovation with Better Decision-Making", Harvard Business Review 86 Dyer, J. H., & Hatch, N. (2004). Using Supplier Networks to Learn Faster. Sloan Management Review, 45(3), 57–63 Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120 Dyer, J. H., Kale, P., & Singh, H. (2004, July–August). When to ally and when to acquire. Harvard Business Review , 109–115

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CCI approves Facebook's 9.99% stake acquisition in Jio Platforms

Facebook's investment worth rs 43,574 crore for 9.99 per cent stake in jio platforms was the first in a series of 11 deals secured by reliance industries' digital arm.

• Updated Jun 24, 2020, 6:22 PM IST

Competition Commission of India has approved Facebook's acquisition of 9.99 per cent stake in Jio Platforms, the digital subsidiary of Mukesh Ambani-led Reliance Industries.

"@CCI_India approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC," the antitrust watchdog posted in a tweet on Wednesday.

The investment worth Rs 43,574 crore by Facebook for 9.99 per cent stake in Jio Platforms was the first in a series of 11 deals secured by Reliance Industries' digital arm. The social media giant had executed this deal via its subsidiary Jaadhu Holdings. Announced on April 22, the deal makes Mark Zuckerberg's Facebook the largest minority shareholder in Reliance Industries.

@CCI_India approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC. CCI (@CCI_India) June 24, 2020

The investment valued Jio Platforms Limited (JPL) at a record Rs 4.6 lakh crore. This will catapult Reliance's digital platform as the fifth largest firm, considering market capitalisation of listed companies in India, behind its parent Reliance Industries (RIL), TCS, HDFC Bank and Hindustan Unilever (HUL).

ALSO READ: BT BUZZ: Don't be naive! Reliance Jio-Facebook deal is a partnership of unequals

Reliance is looking to benefit from the digital expertise of Facebook in transforming Jio Platforms into a full-fledged digital platform from its telecom background. The deal is likely to give boost to RIL's JioMart project. For instance, with JioMart, Jio's small business initiative, and WhatsApp together, customers will be able connect with businesses and ultimately purchase products in a seamless mobile experience. Meanwhile, the Facebook deal and subsequent investments has helped Reliance become a net-debt zero company in a span of nine weeks.

It will also help Facebook increase its penetration in India, its most important market in the world. WhatsApp, the instant messaging application owned by Facebook, alone has more than 400 million users in India.

ALSO READ: Facebook-Jio deal: FB investment values Jio Platforms at record Rs 4.6 lakh crore

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Case Study On Reliance Jio’s Digital Marketing Strategies

• December 9, 2022

Table of Contents

When RIL Chairman and MD Mukesh Ambani staged a series of announcements in 2016 with the goal of revolutionizing India’s digital ecosystem, the outcome was JIO. “Reliance Jio’ billed as the company’s biggest ever digital bet, has since turbocharged India’s internet use through data and technological breakthroughs.

While the directors continue reinventing “Jio” for Digital India, the brand strengthens its social media presence and adapts to trends. We look at one digital marketing strategy at a time in the Jio social media marketing game.

While evolving into a new-age Internet brand, the brand has generated an exciting ripple in the digital arena. Sameer Makani, Co-Founder and Managing Director of Makani Creatives, comments on Jio’s digital-led strategy , saying that most enterprises today operate online due to simple internet access and that most influencers today exist as a result of it. Given Jio’s dominance in the internet market, he believes it is critical for the company to be among the top five, if not the top, in terms of social media presence.

About Reliance Jio

Remember the time when every person suddenly had two numbers, and our contacts looked something like, “Friend, Friend Jio, Friend 1, Friend 1 Jio…” Yeah! This happened after September 5th, 2016, when Reliance Jio was publicly available.

An Indian telecommunications company, Reliance Jio Infocomm Limited is a subsidiary of Jio platforms. Jio runs a nationwide LTE network that serves all 22 telecom circles. Jio presently offers 4G and 4G+ services, but it is striving to expand to 5G and 6G in the future. With around 42.62 crores (426.2 million) members, it is India’s largest mobile network provider and the world’s third-largest mobile network operator.

Jio announced a fiber-to-the-home service in September 2019, which includes home broadband, television, and phone services. Reliance Industries has raised Rs.1.65 lakh crore (US$22 billion) by selling nearly a third of its stock investment in Reliance Jio Platforms as of September 2020.

Talking about their digital presence, Reliance Jio has a minimum of million followers on Instagram, Facebook, and YouTube individually and thousands of followers on Twitter. How did they manage to get such a large following? How have they maintained it? Let’s find out!

Why Should Marketers Study Reliance Jio’s Digital Marketing Strategies? 

Let’s understand Reliance Jio’s digital marketing strategies and how they implemented and achieved success;

1. The 2A and 3R strategies adopted by Jio

Acquisition : People Come to your Website to see what you have to offer

Jio gave free services to its consumers for three months after its commercial launch in September 2016. This strategy worked as a trump card for Jio in gaining customers. Jio was able to gain 16 million subscribers in just one month.

Activation : They go through a variety of activities

The finest experience was delivered to the users, which had never been supplied by any telecom service provider before.

Retention : Customers return

Jio didn’t just leave it there. They extended the free services to subscribers for another three months on the occasion of the new year in 2017. Jio became the first telecom firm to offer clients a free six-month trial period.

Referral : Users are encouraged to invite others

Customers took up the role of preacher. Jio’s company grew as a result of strong customer feedback and user experience.

Revenue : Customers purchase our goods or service

By slashing rates to a tenth of what they were before, Jio was able to increase revenue, which was a key aspect of the company’s success.

2. Moment Marketing Strategies by Reliance Jio

Jio has always been a force to be reckoned with when it comes to in-the-moment marketing, doling out trending content, and jumping on the bandwagon. Moment marketing is known for gaining a lot of attention and becoming a hit with people who are always checking their feeds for new and amusing material.

View this post on Instagram A post shared by Jio (@reliancejio)

3. Staying local

Jio encourages Indian heritage in their social media messaging, staying true to the “humara India” and #VocalForLocal culture that has grown over time. From wishing everyone a happy festival to creating material with Indian themes and as much Bollywood as possible, the brand has taken a very wholesome Indian approach to its digital branding.

Reliance Jio’s digital marketing strategies & Case Study

Now, let’s go through Reliance Jio’s digital marketing strategies on every social media platform;

Reliance Jio’s social media marketing strategies

From perfectly sensing the pulse of the audiences through timely engagement in moment marketing to aptly leveraging content marketing tactics to crafting fantastic stories as needed, Reliance Jio’s social media approach has been all things ‘Dhan Dhana Dhan.’

Here is an overview of Reliance Jio’s social media channels;

Jio’s Instagram Marketing Strategies

Jio has over a million Instagram followers ( @reliancejio ). You’ll discover a range of promotional pieces in their content bucket, posts showing their products, and posts featuring their workers.

They’ve recently posted about the upgradation to 5g services & advanced Indian medical fields, festive offers of Jio, a number of posts about their work with the IPL, congratulating each team on their victories and engaging their cricket supporters. That’s how it keeps on updating & engaging with the audience on Instagram.

Jio’s Facebook Marketing Strategies:

Jio’s Facebook page has the most number of followers, making it their most popular and successful social media account. The aim of their Facebook account, as evident through their bio, is to drive people from their social account to the website. Their bio reads,

“Lives change when they are connected. Imagine a life where every Indian could stay connected to friends and family, stay true to their dreams and passions, and stay inspired and empowered – every second of every day. At Reliance Jio, we believe every Indian deserves this life. The Digital Life”.

We welcome you to experience Reliance Jio Digital Life.

Chat now on MyJio App: www.jio.com/dl/livechat

The content posted on Jio’s Facebook page is quite similar to that on Instagram – IPL – related posts, festival posts, contests, stories of employees, etc. 

Jio also receives feedback and queries in their comments section, which receive quick and personalized replies along with the name of the person writing to them. This shows the customer that a real person is handling their query and gives them confidence that their issues will be resolved. (Marketers, take notes!!) 

Jio’s Twitter Marketing Strategies: 

Jio covers over 858.3K followers on Twitter. Jio’s Twitter ( @reliancejio ) page, like its Instagram and Facebook sites, posts the same type of content. Jio responds to its followers’ questions and retweets what others have to say about the firm on a frequent basis. 

Similar IPL – related content on Jio’s Twitter page:

Jio’s YouTube Marketing Strategies: 

The videos posted on Jio’s YouTube align with those posted on Instagram, Facebook, and YouTube. 

Here are some of the important videos on the Youtube channel including the 45th AGM of Reliance Industries Limited.

Jio’s YouTube also has the same videos in different languages to reach local audiences across India. They have a separate playlist for the following languages: 

• Telegu 
• Malayalam 

This is a wonderful initiative and has also received a positive response from the audience. These videos are mostly instruction-based, guiding people to use Jio. They also posted short videos in the form of YouTube shorts as part of their “Lockdown Heroes” campaign.

Reliance Jio’s SEO Strategies & Case Study

Everybody, today, knows of Jio. However, let’s look closely into what you can find when you google Jio.

Website Overview:

With a blue, a darker blue, and white colour theme, Jio’s website is one that is completely service-oriented and allows customers to get their work done. Jio has a website with a ‘great’ domain authority of 66. Their website ensures complete user-friendliness and is easy to navigate. With subtle colours, clear fonts, and even the option to recharge your SIM, get a new SIM, and/or make payments.

Jio’s website has over 4,28,361 organic keywords and brings 1,29,00,206 monthly traffic to its website. These numbers are way beyond average, and are rated as “amazing.” 

Their top organic keywords include:

• Jio recharge
• how to connect harddisk to the Jio router

Google My Business Page

If you look at what Jio does, you’ll note that they do a fantastic job of setting up Google My Business sites for each of their locations, but some businesses never get around to doing so. It takes a lot of effort at first, but it pays off in the end, as you can see.

Google My Business reviews

When it comes to local searches, reviews are quite essential. Simply creating a listing isn’t enough, as much as we’d like it to be. You must think about it from the perspective of the search engine. Businesses with more reviews (especially those with outstanding ratings) will rank higher (as seen below) since it gives search engines more data points and shows that people are saying good things about them, hinting that it must be valuable.

Building reviews are one of the most difficult components of local optimization after getting listed. It’s not easy to get positive evaluations, but if you put on your marketing hat and use your imagination, you can do just as well as Jio.

Reliance Jio’s Target Audience Demographics

Audience composition can reveal a site’s current market share across various audiences. Reliance jio audience is 67.24% male and 32.76% female. The largest age group of visitors are 25 – 34 year olds.

Jio’s Top Digital Marketing Campaigns 

1. the next generation this children’s day.

Jio celebrated the next generation children’s day with the campaign #JioChildrensDay by asking the next generations to reimagine India & share the idea of future India.

Clebrating the next generation, children’s day Jio’s way with “childlike imagination”

2. Jio’s Lockdown Campaign

Jio’s Lockdown Heroes Campaign honoured the extraordinary stories of some of the company’s network engineers who worked tirelessly to keep the network operating throughout the lockdown. Users would not have been able to continue forward with their lives as smoothly if the pandemic had struck in any other generation, working from home, learning from home, and being amused at home. 

Jio’s celebration of the Lockdown Heroes Campaign, which included numerous detailed anecdotes of frontline workers walking through snow, and traveling for several kilometers to work with restricted transportation, encapsulates the genuine essence of ‘connecting lives.’ 

3. Digital Navratri 

Reliance Jio hosted a Digital Navratri, giving Indians a virtual Darshan from the comfort of their own homes via Jio Meet and Jio TV. Jio can be seen giving opportunities for Indians to go about living and celebrating their lives without having to deal with any inconveniences.

When it comes to celebrations, the AGM has become a major event on Jio’s calendar and in the news. The way the videos are put together suggests that it is no longer the “Reliance of Yesterday” , but rather a futuristically ahead brand competing with the world’s finest technological players.

As you can see, Reliance Jio has made inroads into the digital realm to advertise its goods and brand. Do you want to design your own unique strategy? Enroll in Digital Scholar’s online digital marketing course to improve your company’s digital marketing tactics. This course is for anyone interested in learning everything there is to know about digital marketing and how to apply it to their own company.

Are you ready to elevate the image of your organisation to new heights? The best choice to start with is to take our free digital marketing course . 

What do you love the most about Jio? Let us know in the comments below!

Written By Digital Scholar

Digital Scholar is a premier agency-styled digital marketing institute in India. Which offers an online digital marketing course and a free digital marketing course worldwide to elevate their digital skills and become industry experts. Digital Scholar is headed by Sorav Jain and co-founder Rishi Jain, who are pioneers in the field of digital marketing. Digital Scholar’s blogs touch upon numerous aspects of digital marketing and help you get intensive ideas of different domains of digital marketing.

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Jiomart Case Study: How It Is Leading in E-commerce Industry With Its Business Model?

Lakshya Singh , Rishabh Rathi

When it comes to the Indian business arena, one simply cannot ignore Mr. Mukesh Ambani—the owner of Reliance Industries, and the wealthiest businessman of India. He has footprints in some of the most important sectors of the Indian economy such as refining, oil & gas, petrochemicals, telecom, retail, and media. Reliance's oil refining business has been its crown jewel to date.

In September 2016, Mukesh Ambani officially launched his telecommunication venture called Jio (Joint Implementation Opportunities) and set an example by turning Jio into the largest mobile network in India and the third-largest mobile network operator in the world with over 322.99 million subscribers (source: Wikipedia).

Witnessing the growth in revenues, profits, and market share in the above-mentioned sectors, Mukesh Ambani is now all set to try his hand at e-commerce through his new venture called JioMart . So what exactly is JioMart all about?

JioMart - Company Highlights

JioMart - How Does it Work? Features of JioMart The Idea Behind Starting JioMart JioMart - Business Model and Revenue Model How to Become a Seller on JioMart? How JioMart Consumers and Retailers will Benefit from the Jio-Facebook Deal A Peril Approaching Grofers, Amazon Now, and Big Basket

JioMart - How Does it Work?

JioMart is an online grocery store that provides 50,000+ grocery products at discounted rates at your doorstep through an express delivery system . It follows an on-demand model. The company will avoid the system of warehousing and partner with local retailers instead. These retailers will source the grocery products and deliver it to the customers.

JioMart began functioning in January 2020 and is currently operational in Navi Mumbai, Thane, and Kalyan . The company plans to launch its services in other parts India soon. However, the exact launch date is not known yet.

JioMart's app is available for download on Google Play Store and Apple Store.

Features of JioMart

JioMart will operate on the online to offline business model ; it will connect with local retailers and deliver goods to customers by procuring them from the nearest store located in the customer’s vicinity. This model is unlike the warehouse model used by Grofers and Amazon Now.

The company wants to correct the unorganized retail sector and help local shopkeepers whose businesses were adversely affected due to competitive pricing and warehousing strategies of online retail stores. In addition to increased sales and margins, these shopkeepers will be equipped with point of sale (PoS) terminals, integrated billing applications, and GST compliance . It will also upskill them in inventory management and supply chain management.

RIL wants to establish its new venture, termed as ' Desh Ki Nayi Dukaan' , in this manner.

JioMart claims to offer the following consumer-friendly services :

• Free home delivery: It will give you the benefit of delivery of commodities at your doorstep by procuring it from the nearby store, and that too free of cost, which your 'Kirane wala bhaiya' may not.
• No minimum value: Generally, e-commerce sites set up a minimum value of a purchase to validate free delivery. For example, Grofers has the policy of free delivery on a minimum purchase of INR 500. JioMart will not expect a 'minimum payment' and abstain from delivery charges, even for the smallest of items ordered.
• Express delivery: Express delivery means quicker delivery than ordinary services. In the e-commerce segment, it is generally within 24 hours.
• No questions asked return policy: When you wish to return the goods that you ordered online, you are almost always bombarded with unnecessary questions. And most of the times, they cannot avoided. JioMart will save you this hassle.
• Early bird discount of INR 3000: The platform has come up with a promotional strategy of pre-registration wherein people can save up to Rs 3000 on future shopping. Reliance Jio has started sending invites to its existing telecom service users in selected areas.

The Idea Behind Starting JioMart

JioMart wasn’t an overnight expedition of Mukesh Ambani but a well-assessed move with the sole motive of capturing the highly sought-after e-commerce segment. The domain is projected to grow up to $1.2 Trillion by 2021.

Mukesh Ambani already has a formidable customer base in the retail sector with Reliance Fresh which functions successfully on the brick-and-mortar model. JioMart owner Mukesh Ambani's plan to set up an e-commerce platform goes back to 2019. His ambitious project emulates his desire to compete with global e-commerce giants such as Amazon and Walmart-owned Flipkart.

• Acquisition of Grab A Grub: Grab A Grub is an Indian logistics startup founded in 2013. In March 2019, Reliance Industrial Investments and Holdings Limited (RIIHL) acquired it for $14.9 million to support the logistics of Jio Mart founder Mukesh Ambani’s 'planned e-commerce venture'. Grab was chosen because it worked successfully with some mega-brands such as McDonald's , BigBasket, Myntra , Amazon Now, and Swiggy.
• Acquisition of C-Square: C-Square Info Solutions Private Limited, founded in 2002, provides software solutions for verticals like e-commerce, salesforce, retail, etc. It was acquired by RIIHL in March 2019 for $11.56 million. A strategic move by RIL, it was aimed to strengthen JioMart.

JioMart - Business Model and Revenue Model

RIL is offering local merchants an O2O (online-to-offline) marketplace through JioMart. This business model was pioneered by the Chinese e-commerce giant Alibaba Group Holding Ltd. Under the O2O model, a consumer searches for the product or service online but buys it through an offline channel.

It connects with local retailers and delivers goods to the customers by procuring them from the nearest store located in the customer’s locality. The customer will use his or her official WhatsApp number to place the order. Post confirmation, the user will receive the bill which is to be paid in cash. When the store is ready with the order, the customer will receive a notification to pickup the order from store.

How to Become a Seller on JioMart?

A retailer can register with JioMart to become a seller. After registering with JioMart, retailers will receive the required support for the smooth delivery of goods to customers.

Registered grocery store owners will be able to list their inventories, take orders, create offers, and manage online sales using the app. JioMart will ensure that the sellers associated with its platform get a smooth selling experience.

How JioMart Consumers and Retailers will Benefit from the Jio-Facebook Deal

The Jio-Facebook deal, wherein Facebook will invest INR 43,574 crore ($5.7 billion) in Jio platforms, will make lives easier for the consumers and retailers associated with JioMart. As part of this deal, WhatsApp - Facebook’s popular messaging platform - will collaborate with JioMart. Owing to this collaboration, JioMart users will be able to place their order through WhatsApp and Facebook while payments can be made using ‘WhatsApp Pay’ feature (currently in pilot).

JioMart services have been made available on WhatsApp from 25 April 2020 in Navi Mumbai, Thane and Kalyan. JioMart is currently operating in these three cities only. However, the only mode of payment currently available is cash.

“In the very near future, JioMart - Jio's digital new commerce platform, and Whatsapp - will empower nearly 3 crore small Indian Kirana shops to digitally transact with every customer in their neighbourhood”- Mukesh Ambani said, CEO, Jio Mart.

A Peril Approaching Grofers, Amazon Now, and Big Basket

According to a report, grocery delivery startups such as Blinkit (earlier Grofers) , Big Basket and PepperTap have performed extremely well with enormous funding and exponential revenues in the past couple of years. Realizing the potential, some well-established e-commerce platforms like Paytm and Amazon also began delivering groceries and essentials.

With the entry of the biggest player in the Indian market, a serious threat looms over existing grocery delivery ventures. Besides being a popular brand name, JioMart has some features that lend it an upper hand over its competitors.

When Jio entered the telecom segment, it stirred a revolution and turned the tables. Big shots like Airtel and Vodafone who dominated for years were sent tumbling. A potential revolution is on the cards again because of Reliance's JioMart.

What is JioMart's business model?

Who is jiomart's founder.

JioMart was launched by Mukesh Ambani, India's richest man. Damodar Mall is the chief executive officer of Reliance Retail’s grocery business.

Where is JioMart's service available?

JioMart serves in more than 100 cities in India. To check the availability of JioMart in your area, enter your pin code at the time of ordering.

Does JioMart charge for delivery?

Currently, they do not charge any delivery fee for the orders placed on JioMart.

When was JioMart launched in India?

Jiomart was initially launched in April 2020. It was launched in May 2020 in 200 cities in India.

Which is the parent company of JioMart?

Reliance Retail is the parent company of JioMart.

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• Predatory pricing

All about predatory pricing in light of the Reliance Jio case

This article has been written by Manoj Purohit pursuing Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution and has been edited by Oishika Banerji (Team Lawsikho ). 

This article has been published by Sneha Mahawar .​​  

Table of Contents

Introduction

Competition means that a seller works hard in order to buy a buyer’s patronage and to sustain in the market with other similar sellers and also maximise his profits. A buyer always tries to buy a product or hire a service at the lowest price available with decent quality but a seller always tries to sell his product at the most profitable price in order to maximise his profit. Sellers use various methods to achieve buyers’ patronage. One of such way is the pricing of goods. Sellers price the goods at such a low price that other competitors shall not be able to compete with the price and will be forced to exit from the market. This is called “predatory pricing”. Thus “predatory price” is understood as the selling of products or amenities below the floor price as set by regulation with the intention of reducing the competition or eliminating the competitors out of the market. Competition is considered as one of the most efficient ways to make sure that the end-users are exposed to a wide range of products and amenities at the basic price which is available. Enterprises will have the urge to innovate, sell by means of cost-effective goods thereby meeting consumers’ demand and achieving consumer satisfaction. Competition thus increases the quality of goods and services and the efficiency of the goods as well as services. But in order to achieve this market conditions must be competitive and governments all around the world are struggling hard in order to remove deformity in the market through appropriate regulations and to promote competition. One such regulation is Section 4(b) of the Competition Act, 2002 , which speaks about predatory pricing. In this article, we are going to discuss the concept of predatory pricing in detail. 

Competition kills competition 

In the existing world, each and every person tries to overthrow their competitors for survival in the market and for expansion. In this process, every enterprise shall make sure it stands unique by using smart techniques to do so. Sometimes they even tend to eliminate competitors. This can be highlighted as COMPETITION KILLS COMPETITION. There are various ways to do so and one of such ways is predatory pricing which helps to kill the competition in the market.

Abuse of dominant position 

A dominant position means a position that is generally above others. It is always appreciable to be in the dominant position and not considered disagreeable. But abusing such a dominant position or superiority is considered as a wrongful act. The Competition Act, 2002 defines “dominant position” as a place in which an enterprise enjoys its strength in the market, which enables the firms to work without any dependency of any competition that may be persuaded in the market or which shall affect other enterprises or end users in marker and has the market in its favour under all circumstances. The Competition Act, 2002 prevents firms from abusing their dominant position. Predatory pricing is one of the ways of abusing a dominant position. 

Conditions precedent to bringing a case within the ambit of predatory pricing

The conditions precedent to predatory pricing are:  

• Vending goods or facilitating services at a price that is below the floor price mentioned.
• This is done to make sure other enterprises are thrown out of the market and the competition is reduced.

The “ Competition Commission of India ” has been authorised to decide whether any enterprise or firms abuses the “dominant position” or not in the pertinent market by “predatory pricing” of goods and also to decide if it is in the “dominant position” or not. It may be noted that “predatory pricing” should not be frowned upon unless the firm abuses it while in the dominant position.

Phases of predatory pricing 

There are two main phases that exist in the clock of predatory pricing.

• The first is the sacrifice phase

In this phase the firm incurs losses. It tries to sell the product at the lowest price. It sells the product with good quality and with the lowest price. It tries to keep the price so low that no firm has ever sold the product at such a low price. Here it sacrifices all the profits and the firm incurs huge amounts of loss. The firm considers it to be a marketing strategy and utilisation of capital for marketing just like advertisement expenses or marketing expenses.

• The second phase is the recovery phase

Once the firm makes sure that all the competitors are thrown out of the market it starts increasing the prices. It recovers all its losses or expenses that were incurred in the first phase. The firm makes sure that it has achieved monopoly in the market and that there are no powerful competitors left in the market before increasing the prices in the recovery phase.

Legality of predatory pricing

Predatory pricing is illegal but is very difficult to prove. Predatory pricing violates antitrust laws. The laws intend to make sure there is fair competition in the market. Just by lowering the price it doesn’t prove to be predatory pricing. There are various other reasons for which the prices of the goods can be lowered. In order to prove that lowering of the price is violating Section 4 of the Competition Act, 2002, it has to be proved in a court of law that the lowering of the price was done in order to cause an “appreciable adverse effect” on the competition of the market. The burden of proof lies on the opposite party and should bring evidence that the competition is causing appreciable effects and is increasing monopoly. The firm should be proven guilty that it just did not intend to compete but intended to eliminate the competition.

Effects of predatory pricing on the market

Competition increases the quality of goods and services and the efficiency of the goods as well as services. But in order to achieve this, market conditions must be competitive and governments all around the world are struggling hard in order to remove deformity in the market through appropriate regulations and to promote competition. In case they fail to do so then the predatory pricing shall have the following effects on the market:

• There shall be no competition in the market. When the person with the dominant position eliminates the competition by pricing goods below floor price other competitors shall be forced to exit because of losses.
• Monopoly shall prevail. When all the competitors are exited from the market monopoly shall increase and the person with the dominant position shall be the only seller.
• Enterprises shall neglect technological development. Such enterprises shall not care what the consumers want and will not strive for any sort of development.
• There shall be no efforts of cost reduction by the enterprises in the market since he will be the only seller in the market.
• There shall be no innovation in the market as the goods shall be sold at their price without any efforts to buy the consumers’ patronage.
• High prices shall be charged by the enterprises once all the competitors are eliminated from the market and there is no competition. 

Predatory pricing of Reliance Jio

Reliance Jio entered the Telecom sector on September 5 th, 2016. The regulation of telecommunications in India is carried out by the Telecom Regulatory Authority of India (TRAI). It, along with the Competition Commission of India, ensures that there shall be fair competition in the telecommunication sector and there is appreciable adverse effect on competition in the telecommunication sector.

Bharti Airtel Ltd. had presented a case against Reliance that the holding company i.e. Jio practised a strategy that was anti-competitive and had caused “appreciable adverse effect” on the competition of the market. This allegation was made as Reliance Jio had free services from September 5th, 2016 which amounted to predatory pricing. Airtel had also alleged that the free services that were rendered by Reliance Jio were amounting to the abuse of the dominant position of the Reliance group. It alleged that Reliance was indulging in “predatory pricing” with free services to eliminate competition in the telecom market.

Considerations of Reliance’s behaviour as predatory

• The data-centric works on 4G mobile handsets. It thus ends up with consumers paying more for Jio services for free voice calling.
• Initially, free service was for a trial period till December 30, 2016. But they kept on increasing the deadlines until they introduced the Jio Prime.
• This affected the competition of the market as the other service providers of telecom industries were not able to compete with the free services which were provided by Jio.

Defence taken by Reliance Jio

Jio presented its latest annual report of Airtel before the Competition Commission of India which stated that it did not differentiate any service which was provided by it in the telecom sector. Mere funding by the host company for the purpose of expansion by the new sector entry into the market can not be termed as predatory. Just because it had the funding from the company which had a dominant position in the market which was reliant it wouldn’t amount to Jio having a “dominant position” in the market as it was a new entrant into the telecom sector. Existing competitors had given sufficient choice for customers to shift from one service provider to another without any material cost of switching.

Decision by the Competition Commission of India

Competition Commission of India rejected all the allegations of Bharti Airtel, as it stated that “…in the absence of any dominant position enjoyed by Jio in the relevant market, the question of alleged abuse does not arise…”

The CCI stated that just by providing free services in the market does not amount to be anti-competitive in nature. For Reliance to be held guilty of “predatory pricing”, it must be in a dominant position as per Section 4 of the Competition Act 2002. Since Jio was a new entrant in the Telecom market it can not be said that Reliance Jio was in a “Dominant Position” and can not be held guilty of “predatory pricing”. Even though it had a negative effect on old operators and it did not have a suitable business model to sustain lower tariffs for a very long period of time the accused was not in the “Dominant Position” and cannot be held guilty.

Competition is the most essential thing in the market to protect the consumer interest. It helps consumers from not being exploited. As long as there is competition in the market sellers struggle hard for buyers’ patronage. They use innovative techniques and more options shall be available for the consumers. Techniques like predatory pricing would cause an appreciable adverse effect on the competition of the market. The essentials like “Abuse of Dominant Position” must be present in order to prove that the strategy used results in predatory pricing and shall contravene Section 4 of the Competition Act of 2002. Thus, predatory pricing is considered to be illegal and shall increase the monopoly of the market which leads to high concentration of competitors and there shall be homogeneity of products with a high dependency of consumers on a single enterprise which is not good for the market.

• https://www.investopedia.com/terms/p/predatory-pricing.asp
• https://rcic.in/uncategorized/predatory-pricing-and-its-legal-regime-in-india/
• https://www.business-standard.com/article/companies/cci-rejects-airtel-s-predatory-pricing-case-against-reliance-jio-117061000051_1.html

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Airtel VS Jio Complete case study: Detailed Analysis & Review

• Post author: StockPe
• Post published: April 17, 2023
• Post category: Uncategorized
• Post comments: 0 Comments

Jio and Airtel have engaged in strong competition for a higher market share in the Indian telecom sector. This case study examines the competition between Jio and Airtel in detail, examining their market strategies, product offerings, pricing structures, customer retention rates, and market shares.

One of India’s leading telecommunications providers, Airtel, has been in the business for more than 20 years and has built a solid reputation. On the other side, Jio, a relatively new competitor in the market, has revolutionised the sector with its inexpensive data plans and cutting-edge products. In order to gain insight into how their competitors are promoting industry growth, the study will examine the various facets of their competition, including their strengths and shortcomings.

Airtel Case Study:

 Sunil Bharti Mittal started Airtel, formally known as Bharti Airtel Limited, an international telecommunications business in India, in 1995. Over 418 million people receive voice and data services from Airtel, which operates in 18 nations throughout Asia and Africa. With a market share of about 29.39% in India, Airtel is the second-largest telecom provider.

Strengths and Advantages:

• Broad Network Coverage: Airtel offers 4G and 5G services and has a large network coverage throughout India.
• Customer-centric Approach: Airtel has a strong focus on serving its customers and provides a range of services that are esigned with their needs in mind.
• Diversified Business: Broadband, DTH, and enterprise services are now part of Airtel’s business portfolio.
• Strong Brand Equity: In the Indian telecom sector, Airtel is a well-known and dependable brand.

Weakness and Disadvantages:

• Debt Burden: Airtel’s heavy debt load restricts its ability to invest in infrastructure and technologies.
• Limited Spectrum Availability: Airtel’s ability to extend network coverage and provide high-speed internet services is constrained by the limited spectrum that is available to it.
• High Level of Competition: Jio, which provides inexpensive data services, poses the greatest threat to Airtel.

Overall, with a varied business portfolio, extensive network coverage, and a high brand equity, Airtel is a significant player in the Indian telecom sector. However, it has difficulties like fierce rivalry, a lack of spectrum availability, and a heavy debt load. The measures adopted by Airtel to increase network coverage, diversify its line of business, save expenses, and interact with customers would aid the company in maintaining its position in the market and effectively competing with rivals. 

Jio Case Study:

Jio, also referred to as Reliance, In 2010, Mukesh Ambani, the head of Reliance Industries Limited, created the Indian telecom business Jio Infocomm Limited. In September 2016, Jio launched its commercial operations and started providing 4G LTE mobile, broadband, and digital services.

Here is a synopsis of Jio’s past:

• In 2010, Reliance Industries Limited bought a 95% share in Infotel Broadband Services Limited, which had won the government of India’s auction for a licence to use 4G spectrum across the country.
• With a focus on 4G services, Mukesh Ambani announced plans to invest INR 1.5 lakh crore (about $20 billion) in the telecom industry in 2013.
• Jio conducted a preliminary launch of its services in December 2015 for Reliance workers.
• Jio officially launched its services in September 2016 and offered six months of free voice and broadband services to attract subscribers.
• Jio stated in December 2016 that it had added 50 million users in just 83 days, breaking the previous record for the fastest subscriber ramp-up by a telecom company.
• Jio claimed in March 2017 that it had reached 100 million customers in just 170 days, breaking another another record.
• Jio released its 4G VoLTE feature phone, the JioPhone, in July 2017 with a focus on the low-income and rural markets.
• Jio’s revolutionary pricing model, which included initially providing free voice and data services and subsequently introducing affordable data plans, has allowed it to quickly build up a sizable subscriber base.
• large Network Coverage: Jio offers its consumers 4G and 5G services and has a large network footprint throughout India.
• High Investment in Technology and Infrastructure: Jio has made significant investments in technology and infrastructure, such as the construction of a pan-Indian fibre optic network, which have enabled it to provide high-speed data services and enhance the quality of its network.
• Jio introduced its broadband services, Jio Fibre, in September 2018, providing consumers with high-speed internet, telephony, and TV services.
• Dependence on Data Services: Due to Jio’s emphasis on data services, its reliance on data revenues may be negatively impacted by changes to regulations or competition from other businesses.
• Limited Diversification: Jio’s revenue is primarily derived from the telecom industry, making it less diversified than other market participants.
• Customer complaints about Jio’s network, call quality, and customer service have been received. These issues may have an impact on customer loyalty in the future.

Through a series of investments from businesses like Facebook, Google, and others in 2020, Jio raised INR 1.52 lakh crore (US$20 billion), which aided in debt reduction and strengthened its market position.

With a market share of 36.32% as of 2022 and more than 447 million members, Jio is India’s largest telecom provider.

With its innovative pricing policies, emphasis on digital services, and investments in infrastructure and technology, Jio has completely changed the Indian telecom sector and emerged as a force to be reckoned with.

With its innovative pricing model, robust network coverage, and emphasis on digital services, Jio is a formidable competitor in the Indian telecom sector. However, it has difficulties such reliance on data services, a lack of diversification, and client concerns about network quality and customer service. Jio will be able to sustain its position in the market and effectively compete with other competitors thanks to its strategy to increase network coverage, broaden its business portfolio, engage with customers, and invest in infrastructure and technology.

Airtel vs Jio:

Among the top telecom firms in India are Airtel and Jio. Both businesses are well-established in India and provide a variety of goods and services to their clients. We will thoroughly examine and analyse the two businesses in this case study.

• Background and History: Sunil Bharti Mittal started Airtel, also known as Bharti Airtel, in 1995. It is one of the biggest telecom businesses in the world and has its headquarters in New Delhi, India. Broadband, digital TV, mobile and fixed-line telephony are just a few of the goods and services that Airtel provides.

Jio: Mukesh Ambani founded Jio, also known as Reliance Jio, in 2016. It is a division of Reliance Industries with its headquarters in Mumbai, India. Jio is a supplier of 4G LTE networks and provides a variety of goods and services, including as broadband, digital TV, and mobile and fixed-line phone service.

• Network Coverage: Airtel Airtel provides 2G, 3G, and 4G services and has a significant network presence in India. In India, Airtel offers extensive network coverage that includes both urban and rural areas.

Jio: Jio is an Indian supplier of 4G LTE networks and 4G services. Jio has made significant investments in its network infrastructure, and the country’s coverage of its services is fast growing.

• Products and Services: Airtel: Airtel provides a variety of goods and services, such as Internet, digital TV, and mobile and fixed-line telephone. Additionally, Airtel has introduced Airtel Payments Bank, which enables users to register bank accounts and conduct transactions using mobile devices.

Jio: Jio provides a variety of goods and services, such as broadband, digital TV, and mobile and fixed-line phone service. Jio has also unveiled JioMoney, a mobile-based digital wallet that enables users to conduct transactions.

• Pricing: Airtel’s pricing is reasonable and fluctuates according to the goods and services provided. Customers of Airtel can choose from a variety of plans and packages.

Jio: Jio is renowned for its innovative and fiercely competitive pricing. To increase its market share, Jio has a history of providing services for nothing or at steep discounts.

• Advertising and marketing: Airtel: Airtel has a reputation for running original and imaginative marketing campaigns. In order to promote its brand, Airtel has also teamed up with a number of athletes and celebrities.

Jio: Jio has a reputation for aggressive marketing and publicity activities. Jio has also teamed up with a number of athletes and celebrities to promote its brand.

• Customer assistance is provided by Airtel through a variety of channels, including phone, email, and social media. Airtel has a strong customer care presence in India.

Jio: Jio has received criticism for at times being slow and unresponsive with its customer support.

• Financial Performance: Airtel: Over the years, Airtel has consistently recorded outstanding financial performance and revenue growth. The quarter ended June 30, 2021, had an Airtel net profit of Rs. 284.2 crore.

Jio: Since its launch, Jio has also revealed impressive financial results. Jio made a net profit of Rs. 3,651 crore for the quarter that ended on June 30, 2021.

• Market Share: Airtel: With a market share of over 28%, Airtel is one of the biggest telecom providers in India.

Jio:  With a 36.32% market share in the Indian telecom sector as of January 2022, Jio was the biggest telecom provider in the nation. Since its 2016 inception, Jio has been steadily expanding and upending the Indian telecom industry with its inexpensive internet services and novel products. It has a sizable customer base and is a leading participant in the Indian telecom sector thanks to its robust network coverage and fast 4G and 5G services.

Two significant telecom industry companies in India, Jio and Airtel, each have unique strengths and disadvantages. Airtel is a well-known company with a strong brand, numerous sources of income, and an emphasis on premium services. Jio, a relatively new competitor, has, on the other hand, upended the market with its inexpensive data plans, robust network, and emphasis on digital services.

Jio has eclipsed Airtel in terms of market share and is now India’s biggest telecom provider. With a sizable client base, a variety of revenue sources, and a strong focus on premium services, Airtel is still a formidable competitor.

Jio and Airtel both have distinctive business plans for competing in the market. While Jio is concentrated on growing its network coverage, diversifying its business portfolio, engaging with customers, and investing in technology and infrastructure to provide high-speed data services, Airtel is concentrated on providing premium services and investing in infrastructure and technology to improve customer experience.

In conclusion, Jio and Airtel are two significant participants in the Indian telecom market, each with a unique set of strengths and weaknesses. However, both companies have developed competitive strategies that allow them to thrive in the industry. Customers have benefited from the competition between Jio and Airtel since lower rates, better services, and more inventive items have resulted from it.

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Analyzing influence operations on Facebook: an exploratory study

• Exploratory Article
• Published: 29 May 2024

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• Craig Douglas Albert   ORCID: orcid.org/0000-0003-3225-9386 1 ,
• Lance Y. Hunter 1 ,
• Samantha Mullaney 1 &
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Recently, there have been groundbreaking studies that seek to create unique cybersecurity datasets used to empirically test theories related to strategic cybersecurity. To date, however, this research has neglected cyber-enabled information operations (CEIO). With the remarkable amount of information operations being reported on social media platforms such as Facebook, Twitter, and Instagram, there is a substantial gap in the literature regarding empirical studies on CEIO using cross-national datasets. This exploratory, descriptive study seeks to remedy this dilemma. To do so, this paper investigates the question, “What are the political and economic characteristics of states that are most likely to be targeted by CEIO over social media on Facebook?” To investigate, this exploratory, descriptive study utilizes a unique Information Operations Threat Report Dataset (2020) based on Facebook’s release of 2020 influence operations information that captures CEIO on its platform from 2017 to 2020. A descriptive data analysis reveals that mixed regimes (i.e., states that are partially authoritarian and democratic) and slightly wealthier states are more likely to be targeted in CEIO on Facebook. These exploratory findings provide useful insights into what types of states may be more susceptible to CEIO attacks on Facebook.

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Many blame social media for poor mental health among teenagers, but the science is murky

If Jordy had a switch to instantly shut down social media, she would flip it.

"I'd switch it off, 100 per cent, even if it was for a week, just so people could have that taste of what it would be like," she said.

Now in her first year out of school, the 18-year-old studies nursing at university and works at a local cafe in Charleville, a small town 745 kilometres west of Brisbane, where she has lived most of her life.

Like Australian teenagers everywhere, she has another life online.

"It's like a second world, really," she said.

"You have reality and then you have social media — two extremely different things."

At the moment, she spends an average of five-and-a-half hours a day on her phone, but it's lower than her peak during high school.

"When I first got a phone I was on it constantly, probably like seven hours, eight hours a day," she said.

She has cut back since then because that second world was not always kind, especially when it came to body image — and despite the fact her parents were always strict about phone usage.

"Growing up, I've always been a big girl … and a sporty person — I'm pretty healthy," she said.

"But when we see images, it tends to be just very thin, skinny people.

"It can just take you down, with the click of your fingers."

Jordy was also being bullied at school, but social media meant it could happen around the clock, no matter where she was.

"A group of boys at my school had tagged me on TikTok telling me to go kill myself," she said.

"It was just so heartbreaking. I was just like, 'I go to school with you every day, we've never had an issue in the past.' That's probably the worst thing that's happened."

Jordy's mental health was tanking, and she began to withdraw from activities she used to love, like footy training or seeing friends.

"I just felt so scared to talk to my mum … I was just like, 'I don't want my mum to think I'm using social media the wrong way'," she said.

No matter how bad things got, logging off still felt impossible.

"It was like that fear of missing out, I guess. I think that's the addiction thing, right?" she said.

"You sort of just have to be on your phone to socialise."

Does more screen time cause worse mental health in teenagers?

Teen mental health has deteriorated at an accelerating rate in the last two decades — more or less exactly since social media and smartphones started to become widespread in 2007.

For obvious reasons, many people, especially concerned parents, have leapt to the conclusion that tech is the culprit.

But the science is surprisingly murky, even though there is a link — research shows more screen time is associated with higher rates of depression in adolescents.

"What we know about the link is there's a link, and that's pretty much what we know," said Aliza Werner-Seidler, a senior researcher at the Black Dog Institute.

"We have really good correlational data, there is a strong linear relationship, particularly in young girls.

"What we don't know is about causation — so is young people's mental health leading them to spend more time on social media and screens, or is it actually the other way around?

"We don't know the direction of the effect."

Dr Werner-Seidler is one of thousands of researchers around the world trying to solve that mystery.

Even if many people are convinced they already know the answer because of their own experience online.

"Personally I would say that it's both," Jordy said.

After a session doomscrolling perfect bodies on TikTok, she "would feel horrible" about herself.

"But then I'd continue to use it and then it made me feel even worse."

After 17 years, why don't we have the answers yet?

Despite 17 years of widespread smartphones and social media, researchers still don't have enough data to definitively say whether they're to blame for deteriorating teen mental health.

Getting those long-term studies done is particularly difficult because trends, algorithms and habits change so quickly.

"When I started this work, TikTok wasn't even a thing … Snapchat, really has only taken off in the last decade or so," Dr Werner-Seidler said.

"It's a very fast-moving field. And so it's very, very difficult to get a handle on it before the next thing comes out."

Part of the problem is that studies have focused on overall screen time, instead of looking at what people were doing online.

"Are they FaceTiming with Grandma? Are they viewing distressing content? Are they being groomed online?" Dr Werner-Seidler said.

"This idea of nuance and it matters what people do and how they do it and how long for and with whom.

"We can't tell any of this information just by looking at how long young people spend on screens."

What social media companies know but don't say

The National Mental Health Commission has been investigating the relationship between digital tech and teen mental health.

On Friday it released its findings after months of consultation, noting the lack of longitudinal evidence and calling for further research to be made a "top priority".

Frustratingly for Dr Werner-Seidler, and other researchers in this area, the data that might solve the mystery does exist — but they can't access it.

"Big tech companies have all of this information," she said.

"If they were to share it with academics and scientists, we would be able to learn so much more, so much more quickly."

The data that has so far emerged in other ways, courtesy of lawsuits and whistleblowers such as Frances Haugen in 2021, has been disturbing.

Ms Haugen, a former Facebook employee, revealed detailed internal research showing Instagram was harmful for teenage girls.

One slide from an in-house presentation reportedly said: "We make body image issues worse for one in three teen girls."

The peak body for Australia's technology industry — whose members include social media companies Meta, Snapchat and TikTok — has defended the sector's contribution to public research.

"DIGI's relevant members have long-standing research and community partnerships in mental health and online safety, and specific policies … informed by that work," a spokesperson said.

Depending on the platform, those policies might include parental controls, avenues to report inappropriate content and seek help, customisable settings, and age limits.

Adherence to those age limits has been mostly voluntary, and the federal government is spending $6.5 million on an age verification trial in the hopes of introducing a higher standard of proof.

Some social media companies are trying to get ahead of any future legislation.

Facebook's parent company Meta announced this week it would no longer allow Facebook users to edit their birthdate to say they're over 18 without verification — a feature that's been in place on Instagram in Australia since last year.

A window for change

The public and political mood when it comes to big tech has rarely been darker.

"I've never seen the appetite [for change] as strong as it is right now," said Alice Dawkins, executive director of Reset Tech Australia.

She says there's a window for change with the federal government currently reviewing its key legislation, the Online Safety Act.

"Our online safety laws are geared at protecting people from [one] another online … [but] there's virtually nothing that can be done about protecting people from the tech itself."

As it stands, companies are rarely obliged to share information on how their products, and not just the people using them, may cause harm.

"It's highly exceptional — think about other sectors, like food, like medicine, like toys — it's incredibly routine in those sectors to have risk assessment and risk mitigation of products," Ms Dawkins said.

"There's compounding public awareness of the problem … it's never been a more appropriate time for the government to legislate."

Dr Werner-Seidler said that for now, internal data was being used by big tech to keep users scrolling for as long as possible.

"These are commercial big companies [and] they use a whole bunch of engagement strategies to keep people coming back, and that is their goal," she said.

The conversation you need to have with your kids

Jordy eventually found the courage to tell her mum what was happening to her online.

"When it got really bad I was just like, 'Mum, I need to show you … this is what's happening.'"

After that, her parents insisted she cut back her screen time but, despite everything that had already happened, she still fought it.

"I was so mean to her … I would get so angry, I'd be like, 'Mum, it's not your life,'" she said.

But that was before Jordy noticed a big improvement in her mood and her grades.

"I'm thankful every day that my mum did what she did.

"You can't ever change the fact that your kids are going to use social media," said Jordy, although boundaries were useful in her case.

"Saying to your kids, 'What are you using social media for? Why do you have to be on social media?'

"For parents out there that are struggling, I think it's that conversation you need to have with your kids.

"As a kid, you're going to get frustrated, but it's really just parents trying to protect their kids from what's out there."

Mental health disorders among young people have soared by nearly 50 per cent in 15 years. The ABC is talking to youth, parents, and researchers about what's driving this pattern, and what can be done to turn things around.

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Reporting by Brendan Pierson in New York; Editing by Jacqueline Wong and Leslie Adler

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Brendan Pierson reports on product liability litigation and on all areas of health care law. He can be reached at [email protected].

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