CCI dismisses complaint against e-retailers

Fair trade regulator Competition Commission of India (CCI) has rejected a complaint that alleged unfair trade practices by 23 online retailers and sellers on e-commerce websites, including Ebay India and Amazon Seller Service.

The complainant had alleged that the 23 entities were trying to increase their business illegally and were fooling consumers by using unfair trade practices after seeing defects in the goods and services offered by them.

Rejecting the complaint, the CCI also said it appears allegations are regarding abuse of collective/ group dominance.

However, abuse of collective / group dominance is not covered under the Competition Act, the regulator said in its order dated July 26.

The complaint was also against Clues Network, TSG Fashions, One 97 Communications, Jasper Infotech and Cloudtail India, among others.

According to the CCI, the allegations are mainly in the nature of deficiencies in the provision of goods and services and do not bring out any competition issues.

Besides, the Commission noted that the informant has not alleged any anti-competitive agreement and there was no evidence of any such conduct against the e-commerce players.

There are a number of competitors selling similar goods and services, both online and offline, the CCI said, adding that none of the 23 entities are in the dominant position in the market. " 

"In the absence of dominance, the question of abuse does not arise," the regulator said.

The Commission said no case of contravention of the provisions of either Sections 3 or 4 of the Act is made out against the opposite parties.

While Sections 3 of the Competition Act pertains to anti-competitive practices, Section 4 relates to abuse of dominant position.