Why do online sellers file Anti-trust cases against Amazon in India?

Published: August 28, 2020

E-commerce giant Amazon is going to face a legal battle as an anti-trust case has been filed with the Competition Commission of India against Amazon India by a group of about 2,000 online sellers.

Issues

  • The members of the All India Online Vendors Association, who sell goods on e-commerce sites like Amazon and Flipkart, accused Amazon of engaging in unfair business practices.
  • They alleged that Amazon India buys a bulk of goods directly from the manufacturers and intentionally sells them to sellers with a loss.
  • The sellers again sell the goods on the platform by offering huge discounts.
  • As mentioned in the report an independent seller has to pay more fees to Amazon than that of the others for electronic products.

The system never promotes a competitive environment and individual and independent sellers face difficulties to participate in the business market.

CCI: In 2002, the MRTP (Monopolistic and Restrictive Trade Practice) act was abolished and replaced by the Competition Act, 2002.

  • The Competition Commission of India is a statutory body that was established in 2003 by the act of 2002.
  • The objective of the commission is to promote a suitable competition market by the prevention of all adverse factors, protect consumer interest, ensure freedom of trade.

Next step

The competition commission of India is yet to decide about the next step. They will conduct a review and decide the fate of the allegation whether it needs a wider probe or cessation.

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