E- tailers emerge clean

CCI clears e- tailers of anti- competitive accusations

In a reprieve for the ecommerce companies, Competition Commission of India ( CCI) has rejected allegations of unfair business practices against five online retail majors — Flipkart, Snapdeal, Amazon, Jabong and Myntra.

CCI did not find any prima facie evidence of violations against these firms.

“The Commission is of the prima facie view that no case of contravention of the provisions of either section 3 or section 4 of the Act is made out against the opposite parties,” said CCI in a 10- page order.

On exclusive agreements, order said that such pacts need not result in appreciable adverse effect on competition.

“It does not seem that such arrangements create any entry barrier for new entrants. It seems very unlikely that an exclusive arrangement between a manufacturer and an e- portal will create any entry barrier as most of the products which are illustrated in the information to be sold through exclusive e- partners ( OPs) face competitive constraints,” said the order.

Welcoming the CCI decision, Snapdeal said the order is encouraging for the growth of the ecommerce sector. “Ecommerce in India is not just meeting the aspirations of millions of consumers but is also providing a nationwide market to small and medium sized enterprises and thereby helping them grow and expand their businesses,” it said.

It had been alleged that e- commerce websites and product sellers entered into exclusive agreements to sell products exclusively on select portals.