CCI's New Draft Rules: Modernizing Predatory Pricing Assessment

The Competition Commission of India has released draft rules for determining production costs to better assess predatory pricing. The update aims to align with contemporary legal and economic standards. Stakeholder comments are invited until March 19 on these regulations, which will replace the 2009 norms.

The Competition Commission of India (CCI) has taken a significant step towards updating its framework for assessing predatory pricing by releasing draft rules for determining production costs. The new regulations are set to replace the existing norms established in 2009.

Under these proposed rules, outlined in Section 4(2)(a)(ii), predatory pricing—selling products below cost to undermine competition—is deemed an abusive conduct by dominant enterprises. Predatory pricing will be assessed based on cost benchmarks set forth in the draft CCI (Determination of Cost of Production) regulations, 2025, empowered by amendments to the Competition Act, 2002.

With comments open until March 19, CCI's initiative aims to align its regulatory practices with modern economic theories, judicial precedents, and international competition law, providing scope for expert reviews and confidentiality provisions.