CCI Tightens Grip on E-Commerce with Updated Predatory Pricing Regulations

The Competition Commission of India (CCI) has rolled out regulations to effectively determine production costs. This move is poised to intensify the watchdog's scrutiny on alleged predatory pricing and deep discounting in quick commerce and e-commerce sectors.

Following consultations with stakeholders, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 has been finalized. These regulations will allow for more nuanced case-by-case assessments rather than relying on sector-specific metrics. This approach acknowledges the dynamic nature of digital markets, offering flexibility in interpreting alleged predatory activities.

The CCI's decision to update the 2009 cost regulations reflects a commitment to aligning India's competition law framework with contemporary economic theories and international jurisprudence. Despite some stakeholder concerns regarding clarity, the new framework emphasizes a cost-based assessment model grounded in tangible production costs.

(With inputs from agencies.)