CCI To Probe Amazon, Flipkart For Deep Discounts, Preferred Sellers Model

Ahead of Amazon founder and CEO Jeff Bezos’ visit, the Competition Commission of India (CCI) has ordered investigation against Amazon and Walmart-owned Flipkart on complaints of deep discounting practices and tie-ups with preferred sellers.

The anti-trust watchdog said it had found prima facie evidence necessitating a probe by the director general (DG)-investigation to look into alleged anti-competition discounts by the two online marketplaces. The CCI has directed the DG office to complete the probe within 60 days.

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“We will get to understand the entire business model of the e-commerce sector through this investigation. This is the first time we are probing an e-commerce company,” Ashok Gupta, chairman, CCI, told Business Standard.
The country’s e-commerce, estimated at around $40-billion, makes up for less than 10 per cent of the retail pie, estimated at close to $700 billion. In the past, the CCI, after studying the e-commerce deep discounting matter, had said it was not a competition issue.

Source: Business Standard

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