Stop Predatory Pricing: Piyush Goyal To E-commerce Companies
Nov 08, 2019 By Admin
The e-Commerce Companies have been warned against predatory pricing on their platforms and flouting foreign direct investment (FDI) rules. Commerce and Industry Minister Piyush Goyal has warned ecommerce companies of strict action if they don’t give up such practices.
Offline Lobby has lodged complaint with the Government regarding Online Deep Discounts and Predatory Pricing against e-Commerce Companies. They allege that such platforms follow such practices even if they have to bear losses. To which the e-Commerce Companies has said, “We incur losses due to investment in infrastructure (business & technology) and not because they fund predatory pricing as alleged by offline trade lobbies.”
They further added, “We continue to engage with the government & local economy and have emphasized how we have consistently worked closely with local retail stores and other small businesses. We have over 23,000 retail stores as IHS (I Have Space) stores across 350 cities, over 14,000 Amazon Easy stores across 22 states and nearly 60% of our top 2,000 sellers are offline retailers.”
The Confederation of All India Traders (CAIT) has often complained about predatory pricing and deep discounts, along with other they and has alleged that they follow misplaced logic, funding negative cash flow through investors and monopolizing the market.
It is estimated that e-Commerce companies such as Flipkart and Amazon to make revenue up to Rs 39,000 crore, in sales this festive season.
India’s e-Commerce policy bars marketplaces from selling products from vendors in which they have an equity stake. They also can’t enter into deals with any brand to sell products exclusively on their platforms, i.e. Platform specific deals. These norms came into force in February and are yet to be implemented firmly in the Indian Online Marketplace.
Published by : RAKESH KANWAR & CO.
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