Retail traders' body CAIT is urging the Competition Commission of India (CCI) to expedite its investigation into alleged anti-competitive practices by e-commerce giants Flipkart and Amazon. The move comes amid growing concerns about the impact of these platforms on small businesses.
CAIT claims Flipkart and Amazon's practices are causing a loss of livelihood for lakhs of small retailers, amounting to losses of Rs 25,000 crore per month. The industry body has accused the companies of monopolising mobile phone sales through exclusive launches and using shell entities for invoicing. CAIT alleges that most sales on these platforms are conducted by the companies themselves, rendering the ‘marketplace’ label misleading. The letter claims Flipkart and Amazon used frivolous legal challenges to stall the investigation for over 20 months.
The news is likely to be welcomed by small retailers who have long been struggling to compete with e-commerce giants. They may see this as a step towards a fairer market environment. On the other hand, consumers may be concerned about potential impacts on product variety, pricing, and competition if the CCI takes action against Flipkart and Amazon. Flipkart and Amazon are expected to defend their practices and may challenge any potential CCI rulings.
