SC: Volume-based discounts do not amount to discriminatory pricing

Verdict could influence CCI's probe into tech giants like Google, Amazon: Experts

- BHAVINI MISHRA

The Supreme Court (SC) on Tuesday ruled that offering volume-based discounts does not amount to discriminatory pricing under the Competition Act, 2002, unless such discounts are applied differently to equivalent transactions.

A Bench of Justices Vikram Nath and Prasanna B Varale upheld a decision of the now-defunct Competition Appellate Tribunal (Compat).

"The order of the Compat is affirmed. A cost of ₹5 lakh is imposed on Kapoor Glass for prolonged litigation," the court said.

A volume-based discount, also known as a quantity discount or bulk discount, is a pricing strategy where the price per unit of a product or service decreases as the total purchase quantity increases, encouraging customers to buy more by offering a lower price for larger orders.

This will have a significant impact on the competition law landscape and market dynamics, experts said.