E-com firms under govt radar

E-commerce giants have come under the scanner as the government is looking into matters related to unfair business practices of firms like Amazon and Flipkart, against whom the commerce ministry has recived predatory pricing complaints.

The Centre’s move comes on the back of the order issued by fair trade body Competition Commission of India (CCI) in January, which asked the ministry to enquire into the operations of both Amazon and Flipkart, including their ‘illogical’ discounts and exclusive tie-ups with preferred selling agents.

The Department for

Promotion of Industry and Internal Trade (DPIIT) under the commerce ministry is looking into all complaints, alleging predatory pricing and excessive discounts on e-commerce platforms. The government was alerted after the CCI conducted a market study on goods, food services and accommodation segments and started investigation against Amazon and Flipkart over alleged anti-competitive practices.

Confirming the move, commerce and industry minister Piyush Goyal told the Lok Sabha in a written reply that representations have been received from DPIIT alleging that some ecommerce platforms are engaged in predatory pricing and are providing excessive discounts.

“The extant foreign direct investment (FDI) policy on e-commerce sector, inter-alia, specifies that e-commerce marketplaces will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field. These representations are under examination,” he said.

The government, however, noted that services should be provided by the e-commerce marketplace entity, or other entities in which the e-commerce entity has direct or indirect equity participation or common control, to vendors on the platform at arm’s length and in a fair and non-discriminatory manner.