CCI notifies new definitions to curb predatory pricing
In a further bid to check predatory pricing and ensure fair competition, the Competition Commission of India has notified new definitions for various costs it will use to judge whether a price charged by a company for a product or service is predatory or not.
According to the Competition Act 2002, predatory pricing is where a good or service is priced below its cost — which is to be determined through regulations like the one just issued — with the aim to reduce competition and eliminate competitors.
In February, the CCI had released a draft notification and had called for stakeholder comments. It is after reviewing these comments and incorporating some of the changes suggested that the final version has been notified.
According to the latest notification, the cost of a good or service would be assumed to be its 'average variable cost', which is the total variable cost divided by total output during a particular period. Here, the total variable cost refers to the total cost (including everything that goes into the production of that good or service) minus the fixed cost and fixed overheads attributable to the product.
However, in line with one of the stakeholder comments, the CCI decided to avoid using sector-specific definitions of cost, and instead has decided to view them on a case-by-case basis.
'The Cost Regulations 2025 establish a sector-agnostic, cost-based framework that is flexible and adaptable to various industries, including the digital economy,' the CCI said in a supplementary note issued along with the notification. 'Therefore, rather than prescribing sector-specific metrics, the framework allows for case-by-case assessment, enabling the Commission to consider the unique features and evolving dynamics of digital markets when evaluating alleged predatory conduct.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
10 hours ago
- New Indian Express
Cholamandalam ordered to pay Rs 7.3 lakh to policyholder for service deficiency
Following the incident, Afnan informed the insurance company and sought compensation. A surveyor was appointed by the insurer, and the vehicle was inspected both physically and via video conference with officials at the police station concerned. Later, the insurer sent a letter to the complainant asking him to submit the accident-related documents. Afnan responded that he could not furnish the documents as the vehicle was still in police custody. He contended that the insurance company had already obtained the relevant documents during the survey and claim form submission. On February 1, 2024, as per court orders, the vehicle was released and taken to a garage in Shivamogga for repairs, which were estimated at Rs 6,01,482. Afnan requested the insurer to treat the claim as a total loss, as the repair cost exceeded 75 percent of the IDV. However, the insurer declined, stating the claim had been closed due to delayed submission of documents. Afnan also stated that the second respondent, IndusInd Bank Ltd, had repossessed the vehicle as he failed to pay EMIs following the accident. He approached the consumer commission, alleging that the insurer had failed to process the claim despite having all necessary documents and had thereby caused a deficiency in service. After reviewing the evidence and arguments from all parties, the Commission observed that the second and third respondents -- IndusInd Bank's Chennai and Shivamogga branches -- had only provided the vehicle loan and bore no responsibility in processing the insurance claim. The Commission ruled that the insurance company had wrongfully denied the claim despite proper documentation and deemed it a service deficiency. The bench comprising commission president T Shivanna and member B D Yogananda Bhandya issued the final order recently. The commission directed that within 45 days from the date of the order, the second and third respondents must hand over the vehicle to the insurer, and the insurer must pay Rs 7,30,550 to the complainant at 9 percent annual interest from May 8, 2024, until the full amount is paid. If delayed, the interest rate will increase to 10 per cent until settlement. The commission further instructed the complainant to cooperate with the insurer in transferring the vehicle records at the relevant authority as and when required.
Economic Times
2 days ago
- Economic Times
India's urban buyers show stable confidence, expect brighter outlook: RBI survey
The Reserve Bank of India's latest Urban Consumer Confidence Survey (UCCS) for May 2025 shows that urban consumers maintain stable sentiments about the current economic situation, with a cautious yet improving outlook for the future. The survey reveals that the Consumer Confidence Index (CCI), which measures current consumer sentiment, dipped marginally from 95.5 in March to 95.4 in May, indicating only a slight weakening in how consumers view present conditions. Despite this, expectations for the year ahead have brightened significantly. The Future Expectations Index (FEI), reflecting optimism about the economic outlook, employment prospects, income levels, and spending capacity, rose by one point from 122.4 in March to 123.4 in May. This points to a growing sense of confidence among urban households across 19 major Indian cities, based on feedback from 6,090 respondents surveyed between May 2 and 11. Also Read: RBI's 50 bps rate cut surprise: Two economists who beat the crowd are back with another call A notable aspect of the survey is the easing concern over inflation and price levels. This is the second consecutive survey round showing a decline in pessimism related to high prices. Most respondents now expect inflation and prices to moderate further in the coming year. Also Read: Households feel inflation is easing in short and medium term: RBI Survey The RBI noted, "Pessimism about the current price level and inflation continued to ease for the second consecutive round. Households also expect a decline in both price and inflationary pressures over the coming year."While there has been little change in consumer sentiment about current income levels, optimism remains strong regarding future earnings. According to the RBI, "Households remain firmly optimistic on future earnings even though their sentiment on current earnings remained around its March 2025 level."Spending habits mirror this cautious optimism. Although current expenditure on both essential and non-essential items has dipped slightly since March, consumers anticipate increased spending in the the survey suggests that while urban consumers feel only marginally better about present conditions, their confidence and hope for economic improvement in the year ahead have grown substantially. With inputs from ANI
Time of India
2 days ago
- Time of India
India's urban buyers show stable confidence, expect brighter outlook: RBI survey
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Reserve Bank of India 's latest Urban Consumer Confidence Survey (UCCS) for May 2025 shows that urban consumers maintain stable sentiments about the current economic situation, with a cautious yet improving outlook for the survey reveals that the Consumer Confidence Index (CCI), which measures current consumer sentiment, dipped marginally from 95.5 in March to 95.4 in May, indicating only a slight weakening in how consumers view present conditions. Despite this, expectations for the year ahead have brightened Future Expectations Index (FEI), reflecting optimism about the economic outlook, employment prospects, income levels, and spending capacity, rose by one point from 122.4 in March to 123.4 in May. This points to a growing sense of confidence among urban households across 19 major Indian cities, based on feedback from 6,090 respondents surveyed between May 2 and 11.A notable aspect of the survey is the easing concern over inflation and price levels. This is the second consecutive survey round showing a decline in pessimism related to high prices. Most respondents now expect inflation and prices to moderate further in the coming RBI noted, "Pessimism about the current price level and inflation continued to ease for the second consecutive round. Households also expect a decline in both price and inflationary pressures over the coming year."While there has been little change in consumer sentiment about current income levels, optimism remains strong regarding future earnings. According to the RBI, "Households remain firmly optimistic on future earnings even though their sentiment on current earnings remained around its March 2025 level."Spending habits mirror this cautious optimism. Although current expenditure on both essential and non-essential items has dipped slightly since March, consumers anticipate increased spending in the the survey suggests that while urban consumers feel only marginally better about present conditions, their confidence and hope for economic improvement in the year ahead have grown substantially.
