Explain steps taken to safeguard small retailers: House panel to CCI

Committee also seeks status of the proposed digital competition law

The Competition Commission of India (CCI) has been directed by a parliamentary standing committee to submit its response on steps taken by it to safeguard the interest of small retailers —  who it said constitute 20 per cent of population — amid allegations of deep discounts and other unfair trade practices being adopted by some big players, a person privy to the development said. 

The status of the proposed digital competition law and the way it would address the issues related to anti-competitive practices in the digital markets is also one of the issues on which the CCI’s input has been sought, sources said. 

The committee which is preparing a report titled ‘Doing Business in India-the way forward’, has sought CCI’s response on the regulatory oversight being planned to manage the exponential growth of quick commerce.

  “The committee is taking a comprehensive view of various sectors. In this e commerce is also included. While thinking of e commerce we should not neglect the issues of retailers who make up 20 per cent of our population,” sources indicated.

  The panel has also enquired about the steps being taken by the antitrust watchdog to ensure a level playing field as the e-commerce and quick commerce market is increasingly seeing dominance of a few players with deep pockets. The Parliamentary Standing Committee on Commerce is headed by TMC MP Dola Sen.

 Last month, the All India Consumer Products Distributors Federation had filed a complaint with CCI against players like Blinkit, Zepto and Instamart.

  The complaint alleged that “quick commerce companies were indulging in practices of deep discounts and exclusive supply and distribution agreements, thereby engaging in unfair pricing and affecting the competition in the market for selling consumer goods.”

Harsh Malhotra, Minister of State of Corporate Affairs, had earlier said that the government is not in a hurry to bring the Digital Competition Bill and wants to follow due process and have more deliberations on the proposed legislation before introducing it.

  The minister had also said that there is a need to study the best practices on Digital Competition Laws in other jurisdictions such as the European Union, Japan and Australia and see how it fits in the context of the Indian market.

  CCI will also brief the panel about the impact of some of the new provisions brought in the Competition Amendment Act 2023 including the penalty on global turnover and issues concerning the hub and spoke cartels, it is learnt.

  The antitrust watchdog, in its annual report for financial year 2023-24, had said that it was taking into account the sector specificities, and larger economic and policy backdrop, to intervene carefully only when necessary.   

REGULATORY REACH

  > The committee has sought CCI’s response on the regulatory oversight

 

> The panel has enquired about the steps being taken by the antitrust watchdog

  > Last month, the All India Consumer Products Distributors Federation had filed a complaint with CCI against Blinkit, Zepto, and Instamart

  > Need to study the best practices on digital competition laws from European Union, Japan, and Australia to see how it fits in the context of the Indian market, Minister of State said

 

> CCI will brief the panel about the impact of Competition Amendment Act 2023

  > Parliamentary committee is headed by TMC MP Dola Sen