CCI orders investigation against Amazon, Flipkart over discount practices

CCI has ordered a probe against Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers.

The order follows a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders dealing in smartphones and related accessories.

The trader’s body accused the e-commerce firms of anti-competitive practices like preferential listing, exclusive tie-ups and private labels.

In its order, the Commission said, it needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by the opposite parties are being used as an exclusionary scheme to foreclose competition.

The Competition Commission has asked the Director General to complete the investigation and submit a report within 60 days.