1.CCI Regulations on Predatory Pricing (Competition Law)
What & Where
Predatory pricing = dominant firm sells below cost to expel rivals, later hikes prices.
Key forms: Direct below-cost, cross-subsidisation, discriminatory segment pricing.
India; CCI’s Determination of Cost of Production Regulations 2025 (6 May 2025) assess prices using Average Total Cost.
Quick Facts for MCQs
Legal & Policy
- ATC replaces vague “market value”, delivering uniform cost benchmark.
- Experts mandated for complex assessments; CCI must publish reasoning when deviating from AVC.
- Rules align with OECD competition guidance, boosting global credibility.
Market Dynamics
- Predatory pricing grants short-term consumer savings, long-term monopoly losses.
- Deep capital pools and network externalities sustain below-cost campaigns.
- Judicial delays, intent-proof hurdles dilute deterrence.
Digital Economy
- Real-time market monitoring equips CCI to curb BigTech predation.
- Data-driven lock-ins raise entry barriers for emerging digital platforms.
MSME & Startups
- Stronger cost norms shield MSMEs from deep-pocketed price wars.
- Earlier capture fears discouraged innovation in AI, FinTech segments.
Key Data Points
| Feature | Data-Point |
|---|---|
| Notifying body | Competition Commission of India |
| Notification date | 6 May 2025 |
| Replaces | 2009 Cost Regulations |
| Benchmark metric | Average Total Cost (ATC) |
| Must record reasons when diverging from | Average Variable Cost (AVC) |
| Applicable law | Section 4, Competition Act 2002 |
| Only pre-2025 successful Indian case | NSE vs MCX predatory pricing |



