Competition Commission Tightens Rules On Predatory Pricing In E-Commerce, Q-Commerce

The Competition Commission of India has introduced a new set of regulations, effective from May 7, to tackle predatory pricing in e-commerce and quick commerce sectors.

The overhaul in cost norms aims to curb the growing concerns surrounding "zero-pricing" tactics adopted by major platforms.

The new framework overhauls the existing 2009 cost norms, introducing a clearer methodology for assessing anti-competitive pricing across sectors.

Under the new norms, average variable cost will serve as the primary benchmark for identifying predatory pricing.

However, CCI retains the discretion to use alternative cost measures — such as average total cost, average avoidable cost, or long-run average incremental cost — depending on industry specifics and case complexities.

To ensure fairness in the investigative process, companies under scrutiny will now have the right to challenge cost assessments by engaging independent experts at their own expense.

The changes signal heightened regulatory oversight of aggressive pricing strategies that have become common in India’s rapidly expanding digital retail sector.

In March, the All India Consumer Products Distributors Federation filed a case with the competition watchdog seeking an investigation into the pricing strategies of the major e-commerce and q-commerce platforms.

This was addition to the regulatory challenges faced by Zomato and Swiggy, who are already under investigation by the CCI for alleged anti-competitive practices in their food delivery businesses.