Competition Commission of India is all set to give a big blow to leading e-commerce companies such as Flipkart, Snapdeal, Myntra and Amazon.
Media reports suggest that CCI is now evaluating if ‘price discount’ agreements between manufactures and distributors are anti-competitive in nature or not.
According to Indian Express and PTI, “The Competition Commission of India (CCI) has come across instances of resale price mechanism where a manufacturer does not allow distributor or trading platform to sell its product below a certain price, according to a senior official.”
It also said, “It is now being looked at whether such practices are in violation of competition norms.”
It can be highlighted that under resale price protection seen in consumer goods and different sectors, a manufacturer and distributor that the former’s product would not be sold at a price that is neither below a certain threshold level.
It can be highlighted that recently the regulator discarded of inequitable business against e commerce companies like Amazon, Flipkart, Jabong and Myntra.
After analysing the matter for few months CCI ruled that these companies didn’t breach competition norms by engaging in cartelisation or by abusing their dominant position.