In a sharp rebuke to the Competition Commission of India (CCI), the Supreme Court on Tuesday dismissed its challenge against a glass manufacturer’s use of volume-based discounts, ruling that such practices don’t amount to anti-competitive behavior under the Competition Act, 2002.
The decision came from a bench led by Justices Vikram Nath and Prasanna B. Varale, who found no foul play in the company’s offer of target-based rebates. Instead of stifling competition, the Court noted, these incentives reward bulk buyers and encourage market efficiency — not abuse dominance.
The CCI had argued that these rebates cornered the market, squeezing out smaller players and distorting fair play. But the Court didn’t buy that narrative. It emphasized that competitive pricing and customer loyalty programs — including volume discounts — are not inherently sinister. On the contrary, they may even benefit the market by lowering prices and enhancing consumer choice.
With this ruling, the Court has drawn a clear line between aggressive competition and unlawful dominance, making it evident that not all market power is abuse — and not all discounts are traps.
