Predatory Pricing Explained: A Threat to Fair Competition

Predatory pricing is when a dominant company deliberately lowers its product prices — sometimes even below the cost of production — to drive competitors out of the market or stop new ones from entering.

Once rivals are eliminated, the company raises prices again to recoup losses and gain control of the market. This practice is illegal in many countries, including India, under the Competition Act, 2002.

Recently, the Competition Commission of India notified the Determination of Cost of Production Regulations, 2025, to curb predatory pricing and deep discounting in e-commerce and quick-commerce sectors.

Companies found guilty can face heavy fines, damage to their reputation, and restrictions on future pricing. The goal is to protect fair competition and prevent market abuse.