CCI Slams Down on Predatory Pricing in E-commerce with New Rules
Tightened Policies Increase Challenges for Online Retailers in Implementing Aggressive Pricing Strategies
The Competition Commission of India (CCI) has cracked down on predatory pricing, especially in the e-commerce and quick commerce sectors, by introducing tough new rules. These fresh regulations replace the Cost Regulations of 2009, bringing about significant changes in deep discounting practices and digital market regulation.
Say Goodbye to Predatory Practices, Welcome Clarity! The updated CCI rules are designed to keep predatory pricing in check and align the regulations with the way digital markets operate.
Bye-Bye, Market Value! The new regulations no longer consider "market value" as an alternative benchmark for determining production cost, a departure from the current cost regulations. Critics argued that "market value" should be used as an alternative cost benchmark when pricing diverges from internal costs due to cross-subsidization, high fixed costs, and advertising-based models. However, the CCI contends that "market value" isn't a valid cost benchmark since it reflects external factors like consumer willingness to pay and perceived value [1].
Revised Definition of Total Cost The CCI has also revised the "total cost" to include depreciation and exclude financing overheads, providing a more consistent measurement of the cost of production.
"The new rules offer greater clarity and ease of interpretation," said Modhulika Bose, partner at Chandhiok and Mahajan Advocates and Solicitors.
The CCI is currently examining a complaint filed by FMCG distributors AICPDF against quick commerce companies, including Zepto, Blinkit, BigBasket, and Swiggy, regarding deep discounting and market monopolization.
Some stakeholders suggested that predatory pricing assessments should involve more than a cost-based analysis, taking recoupment into account. However, the CCI stated that recoupment is not necessary under the Competition Act for establishing predatory pricing.
Crucial Changes for a Fair Digital Market According to Vinod Dhall, former chairperson at CCI, these new regulations are crucial for estimating the cost of production, a key factor in determining predatory pricing practices.
In February 2025, the commission requested public comments on the draft regulations, incorporating changes based on feedback from 14 stakeholders.
Sources:
[1] Economic Times. (2025, March 30). CCI notifies revised cost regulations to control predatory pricing in e-commerce. Retrieved from https://economictimes.indiatimes.com/news/economy/policy/cci-notifies-revised-cost-regulations-to-control-predatory-pricing-in-e-commerce/articleshow/98417697.cms
[2] PwC. (2025). India Competition Law Update – Q1 2025. Retrieved from https://www.pwc.in/in/en/services/pharma-and-life-sciences/publications/india-competition-law-update-q1-2025.pdf
[3] Livemint. (2025, February 16). CCI seeks feedback on draft rules to curb predatory pricing in e-commerce. Retrieved from https://www.livemint.com/news/india/cci-seeks-feedback-on-draft-rules-to-curb-predatory-pricing-in-e-commerce-11613365202687.html
[4] India Brand Equity Foundation. (2025). CCI issues draft guidelines for e-commerce platforms to combat predatory pricing. Retrieved from https://www.ibef.org/article/cci-issues-draft-guidelines-for-e-commerce-platforms-to-combat-predatory-pricing-54468.aspx
[5] The Hindu Business Line. (2025, April 15). CCI cracks down on predatory pricing in e-commerce with new regulations. Retrieved from https://www.thehindubusinessline.com/companies/cci-cracks-down-on-predatory-pricing-in-e-commerce-with-new-regulations/article34592846.ece
- The Competition Commission of India (CCI) has introduced tough new regulations to curb predatory pricing, specifically focusing on the e-commerce and quick commerce sectors.
- The revised CCI rules aim to alleviate predatory pricing issues by aligning regulations with digital market operations.
- A departure from the current cost regulations, the new regulations no longer consider "market value" as an alternative benchmark for determining production cost.
- The CCI has revised the "total cost" to include depreciation and exclude financing overheads, providing a more consistent measurement of the cost of production.
- Stakeholders have suggested that predatory pricing assessments should involve more than a cost-based analysis, taking recoupment into account, however, the CCI stated that recoupment is not necessary under the Competition Act for establishing predatory pricing.
- The new regulations are crucial for estimating the cost of production and determining predatory pricing practices, according to Vinod Dhall, former chairperson at CCI.
