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DIPP views on discounts in e-com platforms in India sought

09 Aug '18

1 min read

The Competition Commission of India (CCI) has reportedly sought views of the commerce and industry ministry on deep discounts being offered by e-commerce platforms having foreign direct investment (FDI) in connection with the Walmart-Flipkart deal. CCI feels such discounts distort prices against the guidelines prescribed for marketplace e-tailers with FDI.

CCI has sought the information from the Department of Industrial Policy and Promotion (DIPP) under the ministry, according to a news agency report.

E-commerce companies, however, maintain that such discounts are offered by sellers, who are free to run such schemes both online and offline.

As per the current guidelines, domestic e-commerce marketplace platforms having FDI cannot directly or indirectly influence the prices.
Traders’ body Confederation of All India Traders (CAIT) had earlier approached CCI against the Walmart-Flipkart deal, saying it will create unfair competition and an uneven level playing field for domestic players.

In May, Walmart had announced the acquisition of 77 per cent stake in Flipkart for about $16 billion. (DS)

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