The CCI-Directs Investigation Into Indian E-Commerce Platforms

Author:STA Law Firm
Profession:STA Law Firm

The Competition Commission of India (CCI) has directed the Director General (DG) to conduct investigation into operation of e-commerce portal such as Amazon and Flipkart, in order to determine if they contravene Section 3(1) and Section 3(4) of the Competition Act, 2002 (CA,2002). Infact, under the Section 3(4) of the CA, 2002, CCI can gauge vertical agreements in light of rule of reason to assess whether exclusive arrangement, preferential listing by the e-commerce platforms and deep discount are exclusionary in the sense new participants cannot enter market or retard the competition in anyway.

The Order of January ,2020 of CCI in matter of Delhi Vyapar Mahasangh v. Flipkart Internet Private Limited & subsidiaries & Amazon Seller Services Private Limited & subsidiaries noted need for further investigation that would the business strategy of the e-commerce platforms can be termed as an attempt to hinder/retard the competition thereby having appreciable adverse effect on the competition or not under the...

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