CCI orders probe against Flipkart, Amazon for alleged deep discounting, preferential listing
New Delhi, Jan 14: Fair trade regulator CCI on Monday ordered a probe against e-commerce majors Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms.
The order follows a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories.
The traders' body accused the e-commerce firms of anti-competitive practices like preferential listing, exclusive tie-ups and private labels.
In its order, the Competition Commission of India (CCI) said it needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by online marketplace platforms are being used as an "exclusionary tactic to foreclose competition" and are resulting in an appreciable adverse effect on competition.
Commenting on the order, an Amazon India spokesperson said,"We welcome the opportunity to address allegations made about Amazon. We are confident in our compliance, and will cooperate fully with CCI."
Incidentally, Amazon founder Jeff Bezos is expected to visit India this week.
Meanwhile, a Flipkart spokesperson said they are currently reviewing the CCI order.
"The Flipkart group is fully compliant with all applicable laws and FDI regulations. We take pride in democratising e-commerce in India and giving market access to lakhs of MSMEs, sellers, artisans and small businesses, making quality and affordable goods available to consumers through our transparent and efficient marketplace while creating lakhs of jobs," the spokesperson added.
In its complaint, the trade body alleged that there were instances of several vertical agreements between Flipkart and Amazon and their preferred sellers which have led to exclusion of other non-preferred traders from these online marketplaces.
It has been also been alleged that most of these preferred sellers are affiliated with or controlled by Flipkart or Amazon, either directly or indirectly. Besides, the platforms also gather data on consumer preferences and allegedly use them to their advantage, it added.
"This arrangement has far-reaching consequences on the economy as the non-preferred sellers are relegated to sell only through traditional brick and mortar set-up which involves significant fixed costs and are devoid of wide pan-India reach which online marketplaces offer," it was alleged.
"The Commission observes that the exclusive arrangements between smartphone/mobile phone brands and e-commerce platform/select sellers selling exclusively on either of the platforms, as demonstrated in the information, coupled with the allegation of linkages between these preferred sellers and OPs (opposite parties) alleged by the Informant merits an investigation," the CCI said in its order.
Further, it needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by the e-commerce platforms are being used as an exclusionary tactic to foreclose competition and are resulting in an appreciable adverse effect on competition, contravening the provisions of the Competition Act, the CCI noted.
The Competition Commission has asked the director general to complete the investigation and submit a report within 60 days.
Praveen Khandelwal, secretary general of the Confederation of All India Traders (CAIT) which is spearheading an aggressive nationwide movement against Amazon and Flipkart, said this CCI order has been long awaited by the traders of the country.
"Both Amazon and Flipkart have left no stone unturned in destroying and devastating the e-commerce and retail trade market by indulging into all kinds of malpractices including causing huge GST and income tax revenue loss to the government. Their autocratic business module has resulted into closure of thousands of shops in the country in last three months," he added.
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I'm 100 per cent ready to play T20I World Cup: Dinesh Karthik
Kolkata, Apr 20: Veteran wicketkeeper-batter Dinesh Karthik, who has been in phenomenal form in this IPL, has not given up on his dream to play for India again and would do "everything he can to be in that flight" to the T20 World Cup in the USA and West Indies next month.
Karthik, who will turn 39 by the time the World Cup kickstarts on June 1, was also part of the last edition of the T20I World Cup in Australia in 2022, which was also his last appearance for Team India.
Since then he has become an off-the-field cricket expert, involved in commentary stints.
Returning to IPL this season, he has taken his batting to a new level and displayed some astonishing power-hitting to strike at a rate of 205-plus.
He is also the third leading run-getter for RCB with 226 runs, behind Virat Kohli (361) and skipper Faf du Plessis (232).
"At this stage in my life, it would be the greatest feeling for me to represent India. I'm very, very keen to do so. There is nothing bigger in my life other than representing India in this T20 World Cup," the RCB wicketkeeper-batters said ahead of clash against KKR .
With Karthik's also emerging as a contender, the wicketkeeper slot will be a hotly-contested one for which the Team India think tank may pick two at the most.
Making a comeback from a near-fatal accident, Rishabh Pant has also showed positive intent while captaining Delhi Capitals, and Sanju Samson (Rajasthan Royals), Ishan Kishan (Mumbai Indians), KL Rahul (Lucknow Super Giants) are also in the fray.
Karthik said he would respect whatever the Big Three -- coach Rahul Dravid, captain Rohit Sharma and chairman of selectors Ajit Agarkar -- decide.
"I also feel there are three very, very stable, honest people who are at the helm to decide what should be the best Indian team for the World Cup -- Rahul Dravid, Rohit Sharma and Ajit Agarkar.
"And I'm completely with them. I respect any decision that they take. But all I can say is I'm 100 per cent ready, and I'll do everything I can to be on that flight to the World Cup."
'I'm no Russell or Pollard'
Karthik further emphasised the importance of understanding his strengths as a player, focusing on precision rather than power-hitting like an Andre Russell or Kieron Pollard.
He said he analyses bowlers' patterns to strategise his shots, visualising scenarios during practice to enhance his batting repertoire.
"These days as a player, you need to understand your strengths. I'm not a Russell or a Pollard who can just mishit a ball and get a six for it, rather," said Karthik.
The other day Karthik smashed seven sixes and five fours in his 35-ball 83 in pursuit of a record 288 but eventually RCB fell short by just 25 runs.
"So, I need to understand how I can beat gaps, what sort of balls I can hit for boundaries. And I realised there was a certain pattern in which bowlers were bowling to me, so I needed to try and work out a solution for that.
"Hence, when I practice, I try and understand, okay, if this is what they're going to bowl at me, how am I going to get a boundary, visualising a field that is going to be in place for me.
"So, I worked like that, and I worked backwards, and that helped me, you know, really learn a couple of shots more, at the back end. It's been great to go out there and express myself, and it's been thoroughly enjoyable to do what I'm doing for RCB as a finisher," he added.
