Small business suffering sue to these practices
Indian Authorities have launched an investigation after Retail Trade Group complained against e-commerce giants Amazon and Flipkart. The allegation was that both the companies were indulging in anti-competitive practices to gain an advantage on local traders. The antitrust organization Competition Commission of India (CCI) has pointed out several issues that also include the selling of certain branded mobile handsets on e-commerce websites only.
The preferential treatment to some brands given by the e-commerce companies is also an allegation that CCI is investigating. The Director-General was got instructions from CCI to look if Walmart and Amazon are indulged in availing unnecessary discounts on respective e-commerce sites to enhance their own brand name. CCI told the press that the complainers alleged that Flipkart and Amazon have established an inherently anticompetitive model for e-commerce.
CCI have ordered a probe for the issue
While addressing media spokesperson of Flipkart said, “The Flipkart group is fully compliant with all applicable laws and FDI regulations. We take pride in democratizing e-commerce in India and giving market access to lakhs of MSMEs, artisans, and small businesses, making quality and affordable goods available to the consumer through our transparent and efficient marketplace while creating lakhs of jobs.
Amazon has not commented on this issue. The issue was raised by Delhi Vyapar Mahasngh the group represents the micro and small size business of Delhi. This is the other roadblock in the path of the e-commerce companies as both of then faced some major hindrances in the regulatory front previous year.
Amazon invested $5 billion in Indian operations and Walmart acquired Flipkart for $16 billion in 2018. Both companies are investing big money in the Indian market due to the humongous size of its earning middle class. The Director-General got the order form CCI to complete the investigation in two months and submit the report.
