The Competition Commission of India (CCI) has released the draft Competition Commission of India (Determination of Cost of Production) Regulations, 2025, seeking stakeholder input to modernise its approach to determining predatory pricing under competition law.
The draft regulations are open for public consultation from February 17, 2025, to March 19, 2025.
The move comes as part of the broader regulatory overhaul initiated by the Competition (Amendment) Act, 2023, which introduced several reforms to align India’s competition framework with evolving global practices.
The new regulations aim to update the methodology for determining costs associated with allegations of predatory pricing, replacing the CCI (Determination of Cost of Production) Regulations, 2009.
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The Competition Act, 2002 prohibits predatory pricing under Section 4(2)(a)(ii) as an abusive practice by dominant enterprises.
The law defines “predatory pricing” as the sale of goods or services “below the cost of production”, with the intent to reduce or eliminate competition.
The new draft regulations seek to “modernise cost benchmarks” to ensure consistency with contemporary “economic theories, judicial interpretations, and global competition practices”.
The CCI has invited written comments from stakeholders, requiring them to submit their views via a dedicated form on the Commission’s website.
Significance of the reforms
Since the introduction of the original cost regulations in 2009, competition law has evolved significantly, both in India and globally. With emerging digital markets, platform economies, and new business models, the updated cost determination framework is expected to provide greater clarity in assessing anti-competitive pricing strategies.
Experts believe that these changes will enhance regulatory effectiveness, preventing abuse of dominance while fostering fair competition.
Legal analysts also anticipate that the revised framework will offer clearer guidance to businesses operating in price-sensitive sectors.
Next steps
The CCI will analyse the feedback received during the consultation period before finalising and notifying the Competition Commission of India (Determination of Cost of Production) Regulations, 2025.
Industry leaders, economists, legal professionals, and consumer advocacy groups are expected to weigh in on the proposals.
