Do Competition Laws Actually Lower Prices? An Empirical Study of the
Indian FMCG Market

Samaira Madan

doi:10.46609/IJSSER.2025.v10i08.016

Title: Do Competition Laws Actually Lower Prices? An Empirical Study of the Indian FMCG Market
Authors: Samaira Madan
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 8 Publication Date: August 2025 DOI: 10.46609/IJSSER.2025.v10i08.016
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Samaira Madan pathways school Gurgaon
MLA 8 Madan, Samaira. "Do Competition Laws Actually Lower Prices? An Empirical Study of the Indian FMCG Market." Int. j. of Social Science and Economic Research, vol. 10, no. 8, Aug. 2025, pp. 3258-3263, doi.org/10.46609/IJSSER.2025.v10i08.016. Accessed Aug. 2025. APA 6 Madan, S. (2025, August). Do Competition Laws Actually Lower Prices? An Empirical Study of the Indian FMCG Market. Int. j. of Social Science and Economic Research, 10(8), 3258-3263. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i08.016 Chicago Madan, Samaira. "Do Competition Laws Actually Lower Prices? An Empirical Study of the Indian FMCG Market." Int. j. of Social Science and Economic Research 10, no. 8 (August 2025), 3258-3263. Accessed August, 2025. https://doi.org/10.46609/IJSSER.2025.v10i08.016.
References [1] . Chakraborty, S. (2019). Competition Law and FMCG Pricing in India. Indian Journal of Economics. [2] . Competition Commission of India. (2010–2024). Case Judgments and Orders. [3] . Motta, M. (2004). Competition Policy: Theory and Practice. Cambridge University Press. [4] . OECD. (2015). Impact Assessment of Competition Enforcement on Prices. [5] . Statista. (2023). FMCG Market Data – India.
ABSTRACT: This paper examines whether the enforcement of competition laws in India has effectively reduced consumer prices in the Fast-Moving Consumer Goods (FMCG) sector. Using case data from the Competition Commission of India (CCI), price trends from industry reports, and secondary literature, this study evaluates the impact of anti-competitive practice rulings on market prices. The findings suggest that while competition law interventions have short-term effects in certain commodity segments, long-term price reductions are limited in brand-driven markets due to inelastic demand and strategic pricing. The paper concludes with policy recommendations for enhancing the effectiveness of competition law in delivering consumer welfare in the FMCG industry. The FMCG sector in India is one of the most competitive markets globally, characterized by rapid inventory turnover, thin profit margins, and high consumer sensitivity to price changes. This sector includes everyday goods such as packaged food, beverages, toiletries, and cleaning products. Given its significance, price regulation in FMCG markets is critical for both economic efficiency and consumer welfare. India’s Competition Act, 2002, enforced by the Competition Commission of India (CCI), aims to prevent anti-competitive agreements, prohibit abuse of dominant market positions, and regulate mergers that may adversely affect competition. The Act’s theoretical foundation lies in promoting fair competition, which should, in turn, lead to lower prices and greater consumer choice. However, questions remain: Does the enforcement of competition laws in India actually translate into reduced FMCG prices? Or are structural and brand-related factors more dominant in determining price outcomes?

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