Volume-Based Discounts Are Allowed Under Competition Law: Supreme Court

The Supreme Court has upheld the Competition Appellate Tribunal’s (COMPAT) 2014 decision, ruling that volume-based discounts do not amount to discriminatory pricing under Section 4(2)(a)(i) and (ii) of the Competition Act, 2002, unless similar buyers are treated unequally.

This verdict arose from a complaint by Kapoor Glass against Schott Glass, accusing it of unfair pricing and abuse of market dominance. 

The Court found that offering higher discounts to buyers placing larger orders is a valid business practice. The court imposed a ₹5 lakh cost on Kapoor Glass for dragging the case unnecessarily.

The case now stands conclusively settled, bringing finality to the decade-long dispute.