Competition Quarterly Milestones (January to March 2025)

Partner: Rudresh Singh, Counsel: Divye Sharma, Associates: Rishitosh Akshaya and Kunal Singh

Key Developments

Regulations for determining production costs to enhance the assessment of abusive conduct

The Competition Commission of India (CCI) had released the draft CCI (Determination of Cost of Production) Regulations, 2025¹ for stakeholder consultation on 17 February 2025. These were subsequently notified on 6 May 2025. The regulations aim to modernise CCI’s approach towards determining production costs while assessing allegations of predatory pricing under Section 4 of the Competition Act, 2002 (Competition Act). These regulations have replaced the erstwhile CCI (Determination of Cost of Production) Regulations, 2009, aligning India’s competition framework with evolving global antitrust practices and economic theories.

A key revision is the removal of ‘market value’ as a cost metric, replaced by average variable cost as a proxy for marginal cost. Other cost assessment methodologies, such as average avoidable cost, long-run average incremental cost, etc., may be used, depending on market conditions and industry-specific factors. To enhance procedural fairness, enterprises disputing CCI’s cost determination can request an independent expert review at their own expense.

The regulations reflect the CCI’s proactive stance in updating its tools and methodologies to address anti-competitive practices, taking into account global standards, changing market conditions and stakeholder views.

New regulations governing the penalty recovery process to ensure efficacy and procedural clarity

On 25 February 2025, the CCI announced new regulations overhauling the penalty recovery process, through the CCI (Manner of Recovery of Monetary Penalty Regulations), 2025, which replace the 2011 regulations.² Under the revised regime, a demand notice must now be sent out simultaneously with the penalty order, giving the penalised enterprise at least 60 days to pay.

Enterprises may apply to the CCI for an extension or directions to pay in instalments. However, failure to meet the extended deadlines will result in a default. If payment by instalments is allowed and an instalment is missed, the full outstanding amount becomes payable. Overdue payments attract a 1% monthly simple interest, though the CCI may waive or reduce the interest for unforeseen delays. If appellate courts reduce the penalty, interest will be reduced, and any excess interest paid will be refunded.

If the CCI considers it expedient, it may refer recovery to the income tax authority under the Income-Tax Act, 1961. In such cases, the CCI’s own recovery process is put on hold indefinitely to avoid overlapping enforcement.

Enforcement activity in multidimensional disputes

This quarter observed significant scrutiny of multi-dimensional disputes by the CCI and the appellate authorities.

• CCI approval is mandatory before the Committee of Creditors votes on a resolution plan: On 29 January 2025, the Supreme Court of India clarified that obtaining prior approval from the CCI under the proviso to Section 31(4) of the Insolvency and Bankruptcy Code, 2016 is mandatory before the Committee of Creditors (CoC) can approve a resolution plan.³ The Court held that this proviso clearly mandates that CCI approval must be obtained before the CoC votes on a resolution plan. The Court reasoned that this sequence is crucial since a conditional approval or rejection by the CCI could substantially change the terms of a resolution plan. In such instances, it is imperative that the CoC considers the resolution plan with such changes. The Court therefore held that not treating the proviso as mandatory would be inconsistent with the law’s intent and could lead to poor or flawed decision-making.
  
  This decision reinforces regulatory compliance in the insolvency process by mandating pre-approval from the CCI, ensuring that anti-competitive concerns are addressed upfront. It adds certainty and discipline for resolution applicants in structuring transactions falling within the ambit of the Competition Act.
• Imposition of penalty against Google’s unfair play store policies upheld by the National Company Law Appellate Tribunal: On 27 March 2025, the National Company Law Appellate Tribunal (NCLAT) passed an order on an appeal arising out of a CCI order penalising Google Inc. (Google) INR 936.44 crore (~108 USD million) in October 2022 for abusing its dominant position through unfair policies on the Google Play Store. Google was mandating app developers to use its Google Play Billing System exclusively for all in-app purchases. This resulted in app developers paying a higher commission rate to Google, which was considered anti-competitive.
  
  NCLAT agreed with the CCI’s delineation of the relevant market and the requirement for an effects-based analysis to substantiate Google’s abuse of dominance. However, the NCLAT also held that the penalty imposed on Google’s total revenue was too high and reduced it to INR 216 crore (~25 USD million). NCLAT highlighted that the CCI erred by imposing a penalty on Google’s entire Indian turnover and held that the penalty should be imposed on Google’s ‘relevant turnover’, i.e., the turnover generated via Google Play services.
• Penalty against Goldman Sachs broadens scope of gun-jumping: The CCI imposed a penalty of INR 40,00,000 (~46,450 USD) on Goldman Sachs (India) Alternative Investment Management Private Limited (GS AIF) on 14 January 2025 for failing to notify a subscription to optionally convertible debentures issued by Biocon Biologics Limited (Biocon). GS AIF had contended that the transaction was exempt from obtaining the CCI approval under Item 1 of Schedule 1 of the erstwhile CCI (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011, as the acquisition was undertaken in the ordinary course of business and not strategic.
  
  The CCI noted that GS AIF, in addition to reserved matter rights, had acquired certain information rights and access rights in Biocon. The information rights granted access to certified true copies of the minutes of the board/committee/shareholder meetings (Minutes Right). The access rights granted access to premises and personnel of Biocon during normal business hours. The CCI noted that, “with access to Minutes Right, GS AIF gained privileged access to all commercially sensitive information discussed and deliberated upon during the Board meetings of Biocon”. This could include strategic plans, financial data, details of proprietary technology, business forecasts and other confidential matters crucial to the competitive advantage and market position of Biocon. The CCI held that such access was not granted to ‘ordinary shareholders’ and consequently, GS AIF’s acquisition would be considered strategic and could not have sought the benefit of the exemption under Item 1 of Schedule 1. Prior approval from the CCI was therefore required.
• Information against Honda Motorcycle dismissed citing commercial dispute and limitation period: On 14 January 2025, the CCI dismissed an information filed against Honda Motorcycle & Scooter India (HMSI). It had been alleged that HMSI had abused its dominant position by: (i) coercing the informant to terminate a dealership with Maruti Suzuki; (ii) including clauses that would allow for unilateral and arbitrary termination of dealership; and (iii) dumping unpopular and offbeat models.
  
  The CCI dismissed the allegations and observed that the information was filed beyond the three-year limitation period under the Competition Amendment Act, 2023. The CCI observed that the allegation arose out of inter se correspondence between the parties, which reflected the commercial nature of the dispute, which was therefore outside the purview of competition law.
• Investigation against GMR Airports closed at the threshold stage: On 20 March 2025, the CCI rejected allegations against Delhi International Airport Limited (DIAL) and GMR Airports Limited for engaging in monopolistic practices and closed the information at the threshold stage. The allegations included the imposition of a 13% fee on tenders and manipulation of tender conditions to favour certain companies. The CCI concluded that DIAL was compliant with the appropriate regulations, had applied uniform pricing, and had undertaken a fair and competitive bidding process.
• Investigation directed against the Tamil Nadu State Marketing Corporation Limited for abuse of dominant position: On 25 March 2025, the CCI directed an investigation into the conduct of the Tamil Nadu State Marketing Corporation Limited (TASMAC), which has the exclusive right to sell liquor products to consumers in Tamil Nadu. The information against TASMAC alleged that it had abused its dominant position by: (i) forming a nexus with SNJ Breweries and other breweries to give preferential treatment to only particular beer brands; and (ii) limiting market access to certain beer brands in the state of Tamil Nadu.
  
  The CCI noted that TASMAC is dominant in the market for procurement, marketing, distribution, and sale of beer in the state of Tamil Nadu. It also observed that only a few beer brands were given preferential treatment and dominated the share of its procurement of beer, while the well-known brands in its price list commanded a significantly lower share in procurement. As such, the CCI prima facie found TASMAC to be in violation of the provisions of the Competition Act and accordingly directed the Director General to investigate.

[1] The regulations are available here.

[2] The regulations are available here.

[3] Independent Sugar Corporation Limited v Girish Shriram Juneja, 2025 SCC OnLine SC 181

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