CCI issues norms to assess predatory pricing practices

Competition Commission of India (CCI) has notified the regulations for determining the cost of production, a move that will help the watchdog to more effectively assess alleged predatory pricing and deep discounting practices especially in the quick commerce and e-commerce segments. As part of efforts to update the framework for assessing predatory pricing, the watchdog came out with the draft rules in February.

After stakeholders’ consultations, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 have been notified. The development also assumes significance against the backdrop of CCI looking at some complaints of unfair business practices made against quick commerce as well as e-commerce players.

Competition law prohibits predatory pricing as an abusive conduct by a dominant enterprise. CCI now has a strong regulatory framework to deal with alleged predatory pricing and deep discounting activities in the market place.

It will also help in assessing the complaints against some quick commerce and e commerce entities. Rather than prescribing sector-specific metrics, the new framework allows for case-by-case assessment. This will enable the watchdog to consider the unique features and evolving dynamics of digital markets when evaluating alleged predatory conduct.