New cost norms to aid accurate checks on predatory pricing, says CCI chief

Amidst concerns and complaints over predatory pricing ways, Competition Commission chief Ravneet Kaur on Tuesday said the new cost of production norms will help in having more accurate and objective assessment for easier enforcement outcomes.

Speaking at the function to mark the 16th Annual Day of the Competition Commission of India (CCI) in the national capital, she also said that digital markets see rapid change and the first mover advantage gets concretised very quickly.

"We have the possibility of algorithmic decision-making and self-preferencing by those having the first mover advantage," she said.

Against this backdrop, Kaur said there is a need to have a balance in looking at such conduct, where the approach is "evidence-based, proportionate and anchored in rigorous economic analysis". 

Earlier this month, the Competition Commission of India (Determination of Cost of Production) Regulations, 2025 was notified.

Kaur said it is 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.

With the new norms, she said it is expected that assessing the cost of production will be much more accurate, objective and much easier for enforcement outcomes to be decided.

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.