{"id":43035,"date":"2025-05-09T19:36:49","date_gmt":"2025-05-09T14:06:49","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=43035"},"modified":"2025-05-09T19:36:51","modified_gmt":"2025-05-09T14:06:51","slug":"cji-forwards-in-house-panel-probe-report-president","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/09-05-2025\/cji-forwards-in-house-panel-probe-report-president","title":{"rendered":"CCI Notifies New Definitions to Curb Predatory Pricing"},"content":{"rendered":"\n<p><strong>Syllabus :GS 3\/Economy&nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The<strong> Competition Commission of India (CCI)<\/strong> has notified the<strong> \u201cDetermination of Cost of Production Regulations, 2025\u201d<\/strong>, replacing its 2009 framework.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This regulatory shift aims to empower the watchdog to better <strong>scrutinize predatory pricing and deep discounting<\/strong>, especially in the e-commerce and quick commerce sectors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Background: Predatory Pricing and Competition Law<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Predatory pricing is defined under the <strong>Competition Act, 2002 <\/strong>as &#8220;the sale of goods or provision of services, at a <strong>price below the cost of production with a view to reduce competition or eliminate competitors.&#8221;<\/strong><\/li>\n\n\n\n<li>Such practices are deemed abuse of dominant position under <strong>Section 4 of the Act.<\/strong><\/li>\n\n\n\n<li>The earlier Cost Regulations (2009) were increasingly seen as outdated amid the rise of digital markets, which involve complex pricing structures, cross-subsidies, and non-monetary value exchanges.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Features of the 2025 Regulations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Flexible, Sector-Agnostic Framework:<\/strong> Moves away from a one-size-fits-all model.\n<ul class=\"wp-block-list\">\n<li>Allows case-by-case assessment, adapting to sector-specific dynamics, including platform-based digital businesses.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Focus on Measurable Production Costs: <\/strong>Reaffirms that internal production costs form the benchmark, not market value (which can be influenced by consumer perceptions, brand value, or subsidies).<\/li>\n\n\n\n<li>Rejects stakeholder proposals to use market value due to its subjectivity and external dependencies.<\/li>\n\n\n\n<li><strong>Modernization &amp; Global Alignment:<\/strong> Aligns with international competition law standards and best practices. Incorporates insights from modern economic theories and judicial interpretations relevant to platform economies and dynamic pricing.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Legal Clarity:<\/strong> Provides a defined cost-benchmark framework grounded in economic rationale.<\/li>\n\n\n\n<li><strong>Digital Economy Readiness: <\/strong>Accounts for cross-subsidisation, high fixed costs, and non-traditional revenue models prevalent in digital platforms.<\/li>\n\n\n\n<li><strong>Consumer and MSME Protection:<\/strong> Prevents dominant firms from using price wars to wipe out smaller players.<\/li>\n\n\n\n<li><strong>Ease of Regulation:<\/strong> Enhances CCI\u2019s ability to investigate, quantify, and adjudicate anti-competitive pricing with consistency.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source :TH<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In News<\/strong><\/h3>\n<li class=\"ms-5\">The Competition Commission of India (CCI) has notified the \u201cDetermination of Cost of Production Regulations, 2025\u201d, replacing its 2009 framework.<\/li>\n<p><\/p>\n<h3><strong>Background: Predatory Pricing and Competition Law<\/strong><\/h3>\n<li class=\"ms-5\">Predatory pricing is defined under the Competition Act, 2002 as &#8220;the sale of goods or provision of services, at a price below the cost of production with a view to reduce competition or eliminate competitors.&#8221;<\/li>\n<li class=\"ms-5\">Such practices are deemed abuse of dominant position under Section 4 of the Act.<\/li>\n<li class=\"ms-5\">The earlier Cost Regulations (2009) were increasingly seen as outdated amid the rise of digital markets, which involve complex pricing structures, cross-subsidies, and non-monetary value exchanges.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/09-05-2025\/cji-forwards-in-house-panel-probe-report-president\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43035","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=43035"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43035\/revisions"}],"predecessor-version":[{"id":43051,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/43035\/revisions\/43051"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=43035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=43035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=43035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}