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ARTICLE · 08 AUGUST 2016

When Is Discounting ‘Predatory'?

CMS INDUSLAW
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Predatory pricing is regarded as an abuse of dominant position by an enterprise or a group, but does not include any condition or price which may be adopted to meet competition.

IndiaAntitrust/Competition Law
Avimukt Dar
Avimukt Dar
Sonu Varghese
Sonu Varghese
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The Department of Industrial Policy and Promotion ("DIPP") recently released Press Note No. 3 (2016 series) dated March 29, 2016 ("Press Note") which brought fresh regulatory focus on foreign direct investment ("FDI") into e- commerce entities. The changes brought about by the Press Note have been incorporated into regulation 5.2.15.2 (E-commerce activities) of the consolidated FDI policy ("FDI Policy"), which was made effective from June 7, 2016.

One of the key changes brought in by the Press Note and the FDI Policy is the broad injunction restraining e-commerce marketplace entities from "directly or indirectly" influencing the sale price of goods or services and requiring them to maintain a "level playing field".

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