The Competition Commission of India (CCI) ordered a probe into alleged competition law violations by Amazon and Walmart Inc.-owned Flipkart over allegations that the e-commerce majors promoted and gave discounts to ‘preferred’ sellers, entered into exclusive partnerships with smartphone brands and abused their dominant position.
CCI noted four alleged practices on both the marketplaces – exclusive launch of mobile phones, preferred sellers on the platforms, deep discounting and preferential promotion of private labels. The order follows a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories.
The anti-trust body said such exclusive arrangements between smartphone or mobile phone brands and e-commerce platforms or select companies selling exclusively on either of the platforms merits an investigation. The Competition Commission has asked the Director General to complete the investigation and submit a report within 60 days.