Why in news The Competition Commission of India (CCI) has updated its definitions for determining predatory pricing in order to ensure fa...
Why in news
The Competition Commission of India (CCI) has updated its definitions for determining predatory pricing in order to ensure fair competition.
Predatory pricing is when a product or service is priced below its cost to reduce competition and eliminate rivals.
The CCI’s new rules focus on the "average variable cost" of a product or service, which includes production costs excluding fixed costs and overheads.
In response to stakeholder feedback, the CCI decided not to use sector-specific definitions of cost but to assess each case individually.
The new framework is designed to be flexible, allowing the CCI to consider unique aspects of different industries, including the digital economy.
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