Traders Union Seeks Urgent Action Against Amazon, Flipkart For 'Anti-Competitive Practices'
Confederation of All India Traders requests CCI action against Flipkart and Amazon for anti-competitive practices.
The Confederation of All India Traders (CAIT) on Tuesday requested the Competition Commission of India (CCI) for action in the case filed by Delhi Vyapar Mahasangh against Flipkart and Amazon.
Delhi Vyapar Mahasangh vs Flipkart, Amazon
The case dates back to November 2019 when Delhi Vyapar Mahasangh filed a case against Flipkart and Amazon for "indulging in serious anti-competitive practices" that reportedly led to the closure of businesses of lakhs of Mahasangh members who used to earn their livelihood through retail business.
The Mahasangh has alleged that "these foreign entities (Flipkart and Amazon) have indulged in monopolisation of sales of mobile phones through exclusive launch. Some entities/ellers were created just for invoicing with the sole aim of selling the inventory of Flipkart and Amazon in the name of such entities/sellers."
They claim that the business model of these e-commerce websites is so distorted that almost all the sales on these platforms are done by their own sellers and the millions of other sellers registered on their platforms are just to show that they are operating an e-commerce marketplace and for advertisement only.
What Does Delhi Vyapar Mahasangh Want
The Delhi Vyapar Mahasangh has now urged the Competition Commission of India to take action against Flipkart and Amazon as according to them "passage of every month would mean allowing the anti-competitive practices to the tune of Rs 25,000 crore by them and a corresponding loss of livelihood of retailers and small traders."
The Mahasangh and CAIT are seeking urgent action as they allege that both Flipkart and Amazon could stall the investigation for more than 20 months by filing frivolous litigations using their might.
The CAIT has requested the Competition Commission of India to take urgent steps and give utmost priority to the case and pass a final penalty order to stop their "illegal activities", as the outcome of the case has a serious bearing on the survival of lakhs of retailers and their families.
