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Flipkart, Amazon File Photo
The Confederation of All India Traders (CAIT) has welcomed the findings of the Competition Commission of India’s (CCI) investigation into ecommerce giants Amazon and Flipkart, while calling for urgent action against the companies for allegedly violating Indian laws.
In a statement, CAIT Secretary General Emeritus and Member of Parliament from Chandni Chowk, Praveen Khandelwal, urged the government to introduce stricter ecommerce regulations and policies to prevent future breaches. He vowed to take up the matter with Union Commerce Minister Piyush Goyal, who recently criticised the business practices of e-commerce companies. Khandelwal emphasised that under the leadership of Prime Minister Narendra Modi, no one who violates the law will be spared.
CAIT National President BC Bhartia explained that foreign-funded e-commerce platforms have been undermining India’s retail market for years through predatory pricing and anti-competitive practices. He emphasised that the 2020 complaint filed by the Delhi Vyapaar Mahasangh, a CAIT affiliate, which initiated the Competition Commission of India’s (CCI) investigation, vindicated Indian traders, as the report found Amazon and Flipkart guilty of misconduct.
Bhartia stressed that CAIT would escalate the matter to the Indian government and, if necessary, pursue legal action to ensure accountability. He underscored that CAIT would not rest until decisive steps are taken to prevent companies from bypassing Indian laws in the future.
Amazon and Flipkart e-comm violations flagged by CCI
According to media reports, the CCI investigation has highlighted several violations by both Amazon and Flipkart. These include deep discounting, exclusive seller agreements, preferential treatment to select sellers, and predatory pricing, all of which are damaging to the country’s retail sector. The investigation revealed that these practices were not limited to specific categories such as mobile phones and electronics but extended across various product lines.
Background of the Amazon and Flipkart investigation
The CCI launched its investigation into Amazon and Flipkart in 2020, following a complaint from the Delhi Vyapaar Mahasangh. The complaint alleged that the e-commerce platforms promoted certain sellers with whom they had business arrangements, pushing these sellers to the top of search results and sidelining other retailers.
In a report — spanning over 1,000 pages for Amazon and nearly 1,700 pages for Flipkart — the CCI found that both companies had created ecosystems favouring select sellers, to the detriment of others. These findings are the latest setback for Amazon and Flipkart, which have long faced criticism from smaller retailers for practices that, according to CAIT, have harmed India’s retail ecosystem through heavy discounts and preferential treatment.
Both Amazon and Flipkart are expected to review the CCI report and may file objections before the CCI decides on any penalties. However, CAIT has made it clear that it will push for immediate action to ensure that Indian laws are respected and enforced.
First Published: Sep 13 2024 | 5:00 PM IST
