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Amazon, Flipkart not abusing market position: Competition Commission

A case brought by the AIOVA, which represents more than 3,500 online sellers, complained that Flipkart was using its dominant position to favour select sellers - an argument the CCI rejected

Alasdair Pal | Reuters  |  New Delhi 

flipkart
flipkart

Amazon and its rival in India, the Walmart-owned Flipkart, did not break regulations through their selection of merchants and brands, the Competition Commission of India (CCI) said in a ruling late on Tuesday.

The decision is a defeat for a lobby group representing thousands of online sellers in India.

A case brought by the (AIOVA), which represents more than 3,500 online sellers, complained that was using its dominant position to favour select sellers - an argument the rejected.

AIOVA's case alleged was not adhering to a section of India's anti-trust laws that says should not abuse a dominant market position through "unfair or discriminatory" pricing.

"Looking at the present market construct and structure of online marketplace platforms market in India, it does not appear that any one player in the market is commanding any dominant position at this stage of evolution of market," the Commission said in its ruling.

The Commission added its "considered opinion" was that Amazon has also not broken the rules.

has also brought a similar case against Amazon, alleging it favours merchants that it partly owns, such as Cloudtail and Appario.

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Chanakya Basa, a lawyer for AIOVA, said his client planned to appeal the decision.

"By their own admission claims they are the dominant player," he said.

Flipkart and Amazon could not be immediately reached for comment. Amazon has previously denied the allegations against it.

ALSO READ: Amazon, Flipkart stake claim to be No.1 e-tailer as festive sale ends

India has a burgeoning e-commerce market, with almost 500 million Indians using the internet in 2018. The market is tipped to grow to $200 billion in a decade, according to Morgan Stanley.

First Published: Wed, November 07 2018. 15:36 IST
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