Latest news with #DeterminationofCostofProduction
Hans India
21-05-2025
- Business
- Hans India
FM: CCI fully alert about monopolistic practices
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday stressed that competition drives efficiency, nurtures innovation and benefits consumers. 'For innovation, competition acts as a relentless nudge. In a monopolistic environment, there is no urgency to evolve. Whereas with competition, the fear of being outpaced forces organisations to innovate — in technology, in design, in service, in delivery,' she told the gathering. The enactment of the Competition Act in 2002 was a landmark reform in India's journey from a centrally planned regime to a market-driven economy, and the Commission has emerged as a key institution in safeguarding the spirit of liberalisation while checking its excesses. Addressing the 16th 'Annual Day Celebrations' of the market watchdog here, FM Sitharaman said that competition drives efficiency, nurtures innovation and benefits consumers. Artificial Intelligence technologies raise novel questions about market power, transparency, data access, algorithmic biases, and the scope of competitive harm. 'Free and fair digital markets are challenged by the emergence of gatekeeper platforms, asymmetries in data access and cross-border implications of digital business models. The rise of cross-border digital monopolies demands global cooperation and agile regulation,' according to the minister. Amidst concerns and complaints over predatory pricing ways, Competition Commission chief Ravneet Kaur pointed out that earlier this month, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 was notified. Kaur said it was very essential to have a consistent approach for determining the costs, especially when it comes to digital markets and platforms on predatory pricing and deep discounting. According to Kaur, CCI has been proactive in recalibrating its regulatory tools and framework to respond effectively to the complexities of the digital markets, globalisation and evolving business models. 'CCI is committed to ensuring that there is market access for small businesses, encourages innovation, prevents monopolistic practices and promotes digital inclusion,' she noted.
The Print
08-05-2025
- Business
- The Print
Competition Commission issues norms to assess predatory pricing practices
After stakeholders' consultations, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 have been notified. As part of efforts to update the framework for assessing predatory pricing, the watchdog came out with the draft rules in February. New Delhi, May 7 (PTI) Competition Commission of India (CCI) has notified the regulations for determining the cost of production, a move that will help the watchdog to more effectively assess alleged predatory pricing and deep discounting practices especially in the quick commerce and e-commerce segments. The development also assumes significance against the backdrop of CCI looking at some complaints of unfair business practices made against quick commerce as well as e-commerce players. Competition law prohibits predatory pricing as an abusive conduct by a dominant enterprise. CCI now has a strong regulatory framework to deal with alleged predatory pricing and deep discounting activities in the market place. It will also help in assessing the complaints against some quick commerce and e commerce entities. Rather than prescribing sector-specific metrics, the new framework allows for case-by-case assessment. This will enable the watchdog to consider the unique features and evolving dynamics of digital markets when evaluating alleged predatory conduct, the regulator said in a background note about the regulations. 'Some stakeholders expressed concern that the draft regulations lack clarity on how the Commission will assess costs in different sectors viz. digital markets. In response, the Commission notes that the Cost Regulations 2025 establish a sector-agnostic, cost-based framework that is flexible and adaptable to various industries, including the digital economy,' it said. A few stakeholders advocated for retaining market value as an alternative cost benchmark, especially in markets where pricing may diverge from internal costs due to cross subsidisation, high fixed costs, and advertising-based models. In response, CCI said while market value may help contextualise pricing dynamics, it does not constitute a cost benchmark, as it reflects external factors like consumer willingness to pay and perceived value. 'The draft regulations maintain a cost-based assessment framework grounded in measurable production costs, consistent with international best practices and jurisprudence,' as per the background note. CCI decided to review the cost regulations 2009 wherein certain changes were proposed to keep the regulations in sync with the evolution of competition law jurisprudence. 'The review of these regulations is aimed to align them with modern economic theories, judicial interpretations, and international competition law practices,' it noted. PTI RAM TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
08-05-2025
- Business
- Time of India
Competition Commission issues norms to assess predatory pricing practices
HighlightsThe Competition Commission of India has notified the Competition Commission of India (Determination of Cost of Production) Regulations, 2025, aimed at effectively assessing alleged predatory pricing and deep discounting practices in the quick commerce and e-commerce sectors. The new regulations establish a sector-agnostic, cost-based framework for assessing predatory pricing, allowing for case-by-case evaluations that consider the unique features of digital markets. The review of the 2009 cost regulations aligns with modern economic theories and international competition law practices, ensuring a flexible and adaptable approach to various industries, including the digital economy. Competition Commission of India (CCI) has notified the regulations for determining the cost of production, a move that will help the watchdog to more effectively assess alleged predatory pricing and deep discounting practices especially in the quick commerce and e-commerce segments. As part of efforts to update the framework for assessing predatory pricing, the watchdog came out with the draft rules in February. After stakeholders' consultations, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 have been notified. The development also assumes significance against the backdrop of CCI looking at some complaints of unfair business practices made against quick commerce as well as e-commerce players. Competition law prohibits predatory pricing as an abusive conduct by a dominant enterprise. CCI now has a strong regulatory framework to deal with alleged predatory pricing and deep discounting activities in the market place. It will also help in assessing the complaints against some quick commerce and e commerce entities. Rather than prescribing sector-specific metrics, the new framework allows for case-by-case assessment. This will enable the watchdog to consider the unique features and evolving dynamics of digital markets when evaluating alleged predatory conduct, the regulator said in a background note about the regulations. "Some stakeholders expressed concern that the draft regulations lack clarity on how the Commission will assess costs in different sectors viz. digital markets. In response, the Commission notes that the Cost Regulations 2025 establish a sector-agnostic, cost-based framework that is flexible and adaptable to various industries, including the digital economy," it said. A few stakeholders advocated for retaining market value as an alternative cost benchmark, especially in markets where pricing may diverge from internal costs due to cross subsidisation, high fixed costs, and advertising-based models. In response, CCI said while market value may help contextualise pricing dynamics, it does not constitute a cost benchmark, as it reflects external factors like consumer willingness to pay and perceived value. "The draft regulations maintain a cost-based assessment framework grounded in measurable production costs, consistent with international best practices and jurisprudence," as per the background note. CCI decided to review the cost regulations 2009 wherein certain changes were proposed to keep the regulations in sync with the evolution of competition law jurisprudence. "The review of these regulations is aimed to align them with modern economic theories, judicial interpretations, and international competition law practices," it noted.
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Business Standard
07-05-2025
- Business
- Business Standard
Competition Commission issues norms to assess predatory pricing practices
Competition Commission of India (CCI) has notified the regulations for determining the cost of production, a move that will help the watchdog to more effectively assess alleged predatory pricing and deep discounting practices especially in the quick commerce and e-commerce segments. As part of efforts to update the framework for assessing predatory pricing, the watchdog came out with the draft rules in February. After stakeholders' consultations, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 have been notified. The development also assumes significance against the backdrop of CCI looking at some complaints of unfair business practices made against quick commerce as well as e-commerce players. Competition law prohibits predatory pricing as an abusive conduct by a dominant enterprise. CCI now has a strong regulatory framework to deal with alleged predatory pricing and deep discounting activities in the market place. It will also help in assessing the complaints against some quick commerce and e commerce entities. Rather than prescribing sector-specific metrics, the new framework allows for case-by-case assessment. This will enable the watchdog to consider the unique features and evolving dynamics of digital markets when evaluating alleged predatory conduct, the regulator said in a background note about the regulations. "Some stakeholders expressed concern that the draft regulations lack clarity on how the Commission will assess costs in different sectors viz. digital markets. In response, the Commission notes that the Cost Regulations 2025 establish a sector-agnostic, cost-based framework that is flexible and adaptable to various industries, including the digital economy," it said. A few stakeholders advocated for retaining market value as an alternative cost benchmark, especially in markets where pricing may diverge from internal costs due to cross subsidisation, high fixed costs, and advertising-based models. In response, CCI said while market value may help contextualise pricing dynamics, it does not constitute a cost benchmark, as it reflects external factors like consumer willingness to pay and perceived value. "The draft regulations maintain a cost-based assessment framework grounded in measurable production costs, consistent with international best practices and jurisprudence," as per the background note. CCI decided to review the cost regulations 2009 wherein certain changes were proposed to keep the regulations in sync with the evolution of competition law jurisprudence. "The review of these regulations is aimed to align them with modern economic theories, judicial interpretations, and international competition law practices," it noted. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
