E-Commerce: Amazon, Flipkart Not Violating Competitors Standards, Says CCI

Competitors Commission of India has concluded that business practices of Flipkart and Amazon were not in violation of competitors norms, and turned down allegations of abuse of market dominance made by a grouping of online vendors.Amid issues

revealed in various quarters about alleged unjust service practices in the fast-growing online marketplace, the CCI likewise made it clear that any intervention in the evolving e-commerce market location requires to be “carefully crafted” to guarantee that innovations are not stifled.The latest ruling

from the fair trade regulator is a result of a complaint submitted by the All India Online Vendors Association, a grouping of over 2,000 sellers on different e-commerce market locations. The claims were made against Flipkart India Pvt Ltd., which enjoys wholesale trading and distribution of books, mobiles, computer systems and associated devices, and Flipkart Internet Pvt Ltd. The latter is participated in e-commerce market organisation under the trademark name Flipkart.com, based on details available with the CCI. To examine the benefits of the grievance, CCI thought about ‘services supplied by online market platforms for selling goods in India ‘as the pertinent market. In its order, dated Nov. 6, the guard dog said that while looking at today market construct and structure of online marketplace platforms in India,”it does not appear that any one gamer in the market is commanding any dominant position at this phase of evolution of market.” While concluding that there is no violation of Section 4 of the Competition Act, that relates to abuse of dominant market position, the CCI said that the Flipkart marketplace is required to abide by conditions relevant to entities associated with the company of e-commerce, as set out in the Forex Management (Transfer or Problem of Security by an Individual Local Outside India)Regulations, 2017.” As such, Flipkart Web is bound by these laws, the compliance of which is made sure by the relevant authorities,”the order said.

The grievance was submitted versus Flipkart entities, the regulator stated it considered it proper to hold preliminary conference with Amazon Seller Solutions Pvt Ltd., as that, too, is a key player in the relevant market.Citing the market construct and the context of taking a look at claims versus Flipkart, the regulative body kept in mind that there was no case of contravention of Area 4 by Amazon as

well.Further, the regulator observed that the market location based e-commerce design is still a fairly nascent and progressing design of retail distribution in India.Nov 08 2018, 8:20 AM Nov 08 2018, 8:29 AM November 08 2018, 8:20 AM November 08 2018, 8:29 AM