The Competition Commission has rejected allegations of unfair business practices against five online retail majors — Flipkart, Snapdeal, Amazon, Jabong and Myntra — as it did not find any prima facie evidence of violations. Also Read - Deal of the day: Oppo A12 4GB RAM/64GB storage model at Rs 9,490
The complaints were filed against Flipkart India Pvt Ltd, Jasper Infotech Pvt Ltd, Xerion Retail Pvt Ltd, Amazon Seller Services Pvt Ltd and Vector E-commerce Pvt Ltd. After looking into the matter for the past few months, the fair trade regulator has ruled that these entities did not violate competition norms by indulging in cartelization or by abusing their dominant position. Jasper runs Snapdeal.com, Xerion owns Jabong.com, while Vector is the company behind Myntra.com. Myntra has been acquired by Flipkart.com “… the Commission is of the prima facie view that no case of contravention of the provisions of either section 3 or section 4 of the Act is made out against the opposite parties,” it said in a 10-page order. Also Read - Deal of the day: Today’s best deal available on Poco M3 Pro, Samsung Galaxy F22, more
It was alleged that e-commerce websites and product sellers entered into exclusive agreements to sell products exclusively on select portals. Welcoming the CCI decision, Snapdeal said the order is encouraging for the growth of the e-commerce sector. “e-commerce in India is not just meeting the aspirations of millions of consumers but is also providing a nationwide market to small and medium sized enterprises and thereby helping them grow and expand their businesses,” it said in a statement. Flipkart spokesperson said: “We are totally committed to fair play and this decision further strengthens our belief.” Also Read - Deal of the Day: iQOO Z3 5G sells at lowest ever price, gets cheaper by Rs 1,500
In the recent months, there have been greater concerns that discount sales launched by various e-commerce websites, including Flipkart, were anti-competitive in nature. With regard to exclusive agreements, the Competition Commission of India (CCI) said that such pacts need not result in appreciable adverse effect on competition. “It does not seem that such arrangements create any entry barrier for new entrants. It seems very unlikely that an exclusive arrangement between a manufacturer and an e-portal will create any entry barrier as most of the products which are illustrated in the information to be sold through exclusive e-partners (OPs) face competitive constraints,” the order, dated April 23, said.