A dominant provider of telecom services in a market starts charging predatory prices - well below cost - with the object of driving a smaller rival out of the market. Under the Competition Act, 2002 this conduct is:

Section 4 of the Competition Act prohibits an enterprise in a dominant position from abusing it, and EXPLANATION (b) to Section 4(2) identifies PREDATORY PRICING - selling goods or services below cost with the intent to reduce competition or eliminate competitors - as an abuse. Dominance itself is not unlawful; its abusive exploitation, including predatory pricing, is. The test turns on the enterprise's dominance in a relevant market and the exclusionary intent or effect. The CCI can penalise such abuse. This is a classic unilateral-conduct scenario.