Predatory Pricing Under The Competition Act: A Legal And Economic Perspective
- IJLLR Journal
- 3 hours ago
- 1 min read
Tanvi Goel, UPES
ABSTRACT
Predatory pricing is a controversial strategy that seems to be friendly to consumers but, in the end, damages the very system of competition. Setting prices so low that one drives their rivals out of business is not an uncommon phenomenon. Once the business achieves monopoly status, the predator firm can unequivocally hike the prices, reduce choices, or degrade the quality of products. In India, the Competition Act, 2002 attempts to regulate such anti- competitive behavior through legislation.
This research paper focuses on the legal and economic aspects of predatory pricing in India. It looks at the competition policy of section 4 of the Act, analyzes important case law, focuses on the issues of enforcement confronted by the CCI, and presents lessons from the US and EU jurisdictions. This paper advocates for the use of more impact-focused analysis disregarding the intent-angled approach and offers suggestions to amend the Indian laws on competition in the face of new market realities, particularly in digital and platform economies.
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