Cost Calculation Framework for Competition Proceedings Introduces Detailed Methodology for Assessing Economic Expenses and Marginal Cost Determinations

The CCI (Determination of Cost of Production) Regulations, 2025 establish comprehensive guidelines for determining cost in competition law proceedings. The regulations define multiple cost concepts including average variable cost, total cost, and long run average incremental cost, with average variable cost serving as the primary proxy for marginal cost. The CCI retains discretion to consider alternative cost methodologies in specific cases, subject to written justification. The regulations provide mechanisms for expert engagement, confidentiality requests, and preserve continuity with prior regulatory frameworks by ensuring existing proceedings and actions remain valid under the new regulatory structure. .....

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