As a part of efforts to replace the framework for assessing predatory pricing, the watchdog got here out with the draft guidelines in February.
After stakeholders’ consultations, the Competition Commission of India (Dedication of Value of Manufacturing) Rules, 2025 have been notified.
The event additionally assumes significance towards the backdrop of CCI taking a look at some complaints of unfair enterprise practices made towards fast commerce in addition to e-commerce gamers.
Competition regulation prohibits predatory pricing as an abusive conduct by a dominant enterprise.
CCI now has a robust regulatory framework to take care of alleged predatory pricing and deep discounting actions available in the market place. It would additionally assist in assessing the complaints towards some fast commerce and e-commerce entities.
Fairly than prescribing sector-particular metrics, the brand new framework permits for case-by-case evaluation. This can allow the watchdog to think about the distinctive options and evolving dynamics of digital markets when evaluating alleged predatory conduct, the regulator stated in a background notice concerning the laws.
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“Some stakeholders expressed concern that the draft laws lack readability on how the Commission will assess prices in several sectors viz. digital markets. In response, the Commission notes that the Value Rules 2025 set up a sector-agnostic, price-based mostly framework that’s versatile and adaptable to numerous industries, together with the digital economic system,” it stated.
A number of stakeholders advocated for retaining market worth as a substitute price benchmark, particularly in markets the place pricing could diverge from inner prices due to cross-subsidisation, excessive mounted prices, and promoting-based mostly fashions.
In response, CCI stated whereas the market worth could assist contextualise pricing dynamics, it doesn’t represent a price benchmark, because it displays exterior elements like client willingness to pay and perceived worth.
“The draft laws preserve a price-based mostly evaluation framework grounded in measurable manufacturing prices, in line with worldwide greatest practices and jurisprudence,” as per the background notice.
CCI determined to assessment the fee laws 2009 whereby sure modifications had been proposed to maintain the laws in sync with the evolution of competitors regulation jurisprudence.
“The assessment of those laws is aimed to align them with fashionable financial theories, judicial interpretations, and worldwide competitors regulation practices,” it famous.
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