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.