Flipkart, Amazon Declared Clean: No Evidence Of Market Abuse, Predatory Pricing By CCI
Every now and then various trade bodies in the country have questioned e-commerce giants like Amazon and Flipkart to have indulged into predatory pricings and alleged them to have practiced unfair trade means by giving deep discounts.
The national competition regulating body, Competition Commission of India has always listened to such allegations placed by retailers and trade bodies like the Confederation of All India Traders (CAIT).
However, the statutory regulatory body has now commented that it has not found any evidence of the e-commerce companies like Amazon and Flipkart violating or indulging in predatory pricing models.
CCI Clears Case for E-Commerce Cos
In a meet on Friday, the Parliament was informed by the national competition regulator CCI that no evidence regarding the e-commerce companies indulging into predatory pricing models was found.
The development came after the competition regulator received multiple complaints regarding e-commerce companies like Amazon and Flipkart indulging into, or practicing predatory pricing on their platforms.
In a written reply to a query placed in the Rajya Sabha on Friday, the Minister of State for Commerce and Industry Som Parkash clarified his case regarding the CCI, as the statutory body lies under the Ministry of Corporate Affairs, GoI.
Parkash added that as per the Competition Act, 2002, imposing unfair or discriminatory prices, including predatory pricing, by a dominant enterprise or group, is strictly prohibited.
“As of now, the CCI has not found any contravention by any e-commerce company to have indulged in predatory pricing,” Parkash added.
Replying separately regarding the measures taken by the government, including the ones on FDI policy reforms, Parkash stated,
“In the last seven financial years, India has received FDI inflow worth $440.27 billion, which is nearly 58% of the FDI reported in the last 21 years ($763.83 billion)”.
This indicates increasing inclination of global companies to set up their business in India.
According to this FDI policy, active since Feb 1, 2019, the Government permits 100% FDI in the marketplace model of e-commerce but not in the inventory-based model.
The online firms are also not allowed to influence directly or indirectly prices of goods to be sold on their platforms.