The Competition Commission of India (CCI) has released draft regulations titled “The Competition Commission of India (Determination of Cost of Production) Regulations, 2025” to align with amendments under the Competition (Amendment) Act, 2023 modernize the competition laws in the context of global best practices

Significance: 

  • This regulation is designed to modernize the framework for assessing predatory pricing in India.
  • It focuses on how the “cost of production” is determined, which is crucial for identifying if a company is engaging in predatory pricing.
  • The draft aims to replace the older CCI (Determination of Cost of Production) Regulations, 2009.
  • It is designed to align with the Competition (Amendment) Act, 2023.
  • The regulation will work to bring Indian standards in line with international best practices.

Key Changes:

  • A significant shift is in the methodology for determining costs. The draft regulations propose moving from reliance on “market value” to a focus on “average total cost,” among other cost concepts.
  • The regulations will also use average variable cost, as a proxy for marginal cost.

Importance:

  • Predatory pricing, where a dominant company sells goods or services below cost to eliminate competitors, is a serious anti-competitive practice.
  • These new regulations will help the CCI more effectively identify and address such practices.

Stakeholder Involvement:

  • The CCI has opened a period for stakeholders to provide feedback on the draft regulations.

This daft regulation seeks to provide a more up-to-date and effective way for the Competition Commission of India (CCI) to regulate and prevent predatory pricing practices.

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He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.