How will SC ruling on anti-trust probe impact Amazon, Flipkart?
The Hindu
Why is the Competition Commission of India probing the e-commerce giants and what happens next?
: The Supreme Court on Monday ruled that for their alleged anti-competitive business practices. The companies had approached the Supreme Court after thefrom proceeding on a complaint filed against them by a traders lobby. Union Commerce Minister Piyush Goyal welcomed the top court’s decision in Parliament. The CCI initiated its probe against Amazon and Flipkart last year following a complaint filed by the Delhi Vyapar Mahasangh (DVM), a lobby promoting the interests of small traders. The complaint alleged that the e-commerce giants favoured certain sellers over others on their platforms by offering them discounted fees and preferential listing. Fee discounts offered by platforms can help certain sellers offer lower prices than others. Preferential listing is a practice where the products offered by certain sellers are more prominently displayed than the products offered by other sellers. The DVM also raised concerns about Amazon and Flipkart entering into tie-ups with mobile phone manufacturers to sell phones exclusively on their platforms. The trader body argued that this was anti-competitive behaviour as smaller traders could not purchase and sell these devices. Concerns were also raised over the flash sales and deep discounts offered by e-commerce companies, which could not be matched by small traders.More Related News
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