Praveen Khandelwal Urges Action Against Amazon and Flipkart for Unfair Practices
New Delhi, India – Praveen Khandelwal, BJP MP and Secretary General Emeritus of the Confederation of All India Traders (CAIT), has called for immediate intervention from Union Commerce Minister Piyush Goyal following findings by the Competition Commission of India (CCI) against Amazon and Flipkart. Khandelwal described the CCI report as historic, revealing that both companies have violated anti-trust laws.
Khandelwal urged the Union Minister to implement e-commerce rules under the Consumer Protection Act and introduce a comprehensive e-commerce policy. He also called for action against the brands named in the CCI report and the suspension of business operations for Amazon, Flipkart, and their colluding brands. Additionally, he requested the suspension of upcoming “festival sales” events by these companies, which he claims harm domestic traders through anti-competitive practices.
The CCI report highlights severe anti-competitive practices by Flipkart and Amazon, including preferential treatment of sellers, deep discounting, and collusion with major brands. These practices have harmed domestic traders and created an uneven playing field. The report also supports earlier statements by Union Minister Goyal criticizing the business practices of foreign e-commerce companies in India.
The CCI identified several entities involved in these practices, including Flipkart Internet Pvt. Ltd., Flipkart India Pvt. Ltd., Instakart Pvt. Ltd., 31 associated sellers, and six mobile manufacturers like Xiaomi, Samsung, Realme, Motorola, and Vivo. The investigation also examined Walmart’s stake in Flipkart and its impact on India’s retail market.
Similarly, the CCI findings against Amazon Seller Services Pvt. Ltd., Amazon Wholesale India Pvt. Ltd., and their proxy sellers, Cloudtail and Appario, implicate mobile manufacturers like Xiaomi, Samsung, and OnePlus. Amazon’s market dominance and subversion of FDI policies raise further concerns about its business practices in India.
Khandelwal emphasized that these activities are damaging competition and adversely affecting third-party sellers on their platforms, violating the Competition Act. Complaints from trade bodies like CAIT and Delhi Vyapar Mahasangh All India Mobile Retailers Association (AIMRA) led to the CCI findings. He accused both e-commerce giants of promoting preferential treatment and collusion, creating an unfair market environment.
Khandelwal claimed that foreign funding allows Flipkart and Amazon to offer heavily discounted products, especially during major sales events, undercutting smaller sellers and driving them out of the market. These practices aim to eliminate competition, reduce consumer choices, and drive up prices in the long term. He noted that these anti-competitive practices extend across various product categories, benefiting only a select few while disadvantaging millions of sellers.
Doubts Revealed
Praveen Khandelwal -: Praveen Khandelwal is a member of the BJP (Bharatiya Janata Party) and the Secretary General Emeritus of CAIT (Confederation of All India Traders). He works to protect the interests of small traders in India.
BJP -: BJP stands for Bharatiya Janata Party, which is one of the major political parties in India. It is currently the ruling party in the country.
CAIT -: CAIT stands for Confederation of All India Traders. It is an organization that represents the interests of small and medium-sized traders in India.
Union Commerce Minister -: The Union Commerce Minister is a government official in India responsible for trade and commerce. Piyush Goyal is the current Union Commerce Minister.
Piyush Goyal -: Piyush Goyal is an Indian politician and the current Union Commerce Minister. He is responsible for overseeing trade and commerce activities in India.
Amazon and Flipkart -: Amazon and Flipkart are two of the largest e-commerce companies in India. They sell a wide range of products online, from electronics to clothing.
CCI -: CCI stands for Competition Commission of India. It is a government body that ensures fair competition in the market and prevents anti-competitive practices.
anti-competitive practices -: Anti-competitive practices are actions taken by companies to unfairly limit competition. This can include things like giving special treatment to certain sellers or offering very low prices to drive others out of business.
preferential treatment -: Preferential treatment means giving special advantages to certain sellers or companies over others. This can make it harder for smaller businesses to compete.
deep discounting -: Deep discounting is when companies sell products at very low prices, often below cost, to attract customers. This can hurt smaller businesses that can’t afford to lower their prices as much.
collusion -: Collusion is when companies secretly work together to control prices or market conditions. This is illegal because it harms fair competition and consumers.
e-commerce rules -: E-commerce rules are regulations that govern how online businesses operate. These rules are meant to ensure fair competition and protect consumers.
