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Determination of Cost of Production Regulations, 2025
May 13 , 2025
17 hrs 0 min
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- The Competition Commission of India (CCI) has notified the regulations for determining the cost of production.
- It is aimed at effectively assessing alleged predatory pricing and deep discounting practices in the quick commerce and e-commerce sectors.
- Predatory pricing occurs when a dominant firm sets prices below the production costs to eliminate competition.
- Once competitors are driven out, the firm can raise prices.
- This practice is considered anti-competitive and is explicitly prohibited under Section 4(2)(a)(ii) of the Competition Act, 2002.
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