Try using > this solution works pretty well if you need to have a json in your env variables. There are many ways to have a multiline strings in YAML.
version: '2'
services:
  catalog-api-autoscaling:
    image: company.it/project/catalog-api-autoscaling:latest
    container_name: api-autoscaling
    ports:
      - "8083:8083"
    environment:
        CONFIG_ABC: >
          {
            "database": {
               "catalog": {
                   "credentials": {
                       "username": "scott",
                       "password": "tiger",
                       "datbase": "catalog",
                       "host": "gn.dmfkd.lan"
                    }
                }
            }
          }
        CONFIG_DEF: >
          {
            "urlRegex": "/.*",
            "script": {
              "scriptPath": "example-python-app.py"
            },
            "runtime": "python27",
            "threadsafe": true,
          }