The Competition Commission of India (CCI) has found that e-commerce giants Amazon and Flipkart violated the country’s competition laws.
I've urged Commerce Minister @PiyushGoyal to suspend the upcoming festival sales by #Amazon and #Flipkart due to their unfair practices harming local traders. E-commerce rules must be enforced strictly to protect small businesses.
Read full article : https://t.co/xWWIbDtKzo
— Praveen Khandelwal (@praveendel) September 16, 2024
The CCI’s investigation revealed that these platforms colluded with major smartphone manufacturers like Samsung and Xiaomi, giving them preferential treatment. According to the CCI’s findings, Amazon and Flipkart engaged in practices such as exclusive product launches, deep discounting, and preferred listings for select sellers.
These actions have raised concerns about fair competition in India’s digital marketplace.
CAIT Secretary General & Chandni Chowk MP Shri @praveendel seeks suspension of Amazon & Flipkart Operations after @CCI Investigation report findings. @PMOIndia @narendramodi @PiyushGoyal @CimGOI @DPIITGoI @AmitShah @AshwiniVaishnaw @smritiirani https://t.co/FHeiopLflB
— Confederation of All India Traders (CAIT) (@CAITIndia) September 13, 2024
Trade groups are now calling for immediate enforcement of e-commerce regulations and the suspension of Amazon and Flipkart’s operations in light of these breaches. BJP MP Praveen Khandelwal has also requested Commerce Minister Piyush Goyal to suspend the festival sales hosted by these e-commerce giants.
Khandelwal argues that Amazon and Flipkart are not acting as neutral marketplaces but instead disproportionately favoring certain sellers. This puts the vast majority of sellers at a disadvantage.
india’s e-commerce law enforcement
What were the key antitrust violations by Amazon, Flipkart in India? https://t.co/mADyowxsvi
1⃣Preferred Sellers (Amazon 6, Flipkart 33)
2⃣Preferential Listings
3⃣Exclusive Launches
4⃣ Deep discounting+ Firms used foreign funds to subsidize rates for select sellers
— Aditya Kalra (@adityakalra) September 16, 2024
In the antitrust probe of Amazon, Flipkart, Competition Commission of India talks about foreign investments.
The CCI said companies used FDI to provide subsidised rates for services like warehousing and marketing to a select number of sellers https://t.co/F92SBl8lNy
— Aditya Kalra (@adityakalra) September 15, 2024
The Confederation of All India Traders (CAIT) has also demanded the enforcement of e-commerce laws on Amazon and Flipkart, citing unfair business practices. Flipkart has reportedly provided its sellers with new tools and resources ahead of its flagship event, which has drawn further criticism regarding the platform’s preferential treatment of certain vendors. The CCI’s investigation marks a significant step in regulating digital commerce in India.
The inclusion of smartphone makers like Samsung and Xiaomi in the case could increase their legal and compliance headaches. Minister Piyush Goyal has yet to publicly respond to MP Khandelwal’s requests. Meanwhile, both Amazon and Flipkart continue to prepare for the festive season, a critical period for their sales and revenue.
In related news, the CCI has approved Dixon Technologies’ acquisition of a stake in Aditya Infotech. The CCI has also mandated that digital firms with a turnover of Rs 500 crore must seek approval for mergers and acquisitions.
