CAIT approaches CCI against Flipkart, Amazon for anti-competitive practices

CAIT writes to CCI seeking the urgent resolution of the longstanding Delhi Vyapar Mahasangh case involving alleged anti-competitive practices of Flipkart and Amazon

Confederation of All India Traders (CAIT), the industry body for retail traders, has written to the Competition Commission of India (CCI) seeking the urgent resolution of the longstanding Delhi Vyapar Mahasangh case involving alleged anti-competitive practices of Flipkart and Amazon.

“Passage of every month would mean allowing the anti-competitive practices to the tune of Rs 25,000 crore by Flipkart and Amazon and a corresponding loss of livelihood of retailers and small traders,” wrote Praveen Khandelwal, National General Secretary, CAIT, in a letter to the CCI.

Delhi Vyapar Mahasangh had, in November 2019, filed a case against Flipkart and Amazon, alleging that they are indulging in serious anti-competitive practices that led to the closure of business of lakhs of its members who used to earn their livelihood through retail business.

“These foreign entities (Flipkart and Amazon) have indulged in monopolisation of sales of mobile phones through exclusive launch. Some entities/sellers were created just for the purpose of invoicing with the sole aim to sell the inventory of Flipkart/Amazon in the name of such entities/sellers,” read the CAIT letter.

The industry body alleged that “almost all” sales on the aforementioned e-commerce platforms are carried out 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.”

The letter further claimed that Amazon and Flipkart could stall the investigation for more than 20 months by filing frivolous litigations and requested the competition watchdog to take prompt action.