E-commerce companies under scanner for predatory pricing |
Union Commerce Minister Piyush Goyal has said that the Indian government is probing WalMart-owned Flipkart and Amazon over the alleged predatory pricing during the recently concluded festival season sales. Speaking to reporters, Mr. Goyal said detailed questionnaires have been sent to these companies and their response is awaited. Stating that e-commerce companies have no right to sell products at discounts that will result in retail sector incurring major loss, Mr Goyal said these platforms are only allowed to connect potential sellers and buyers. The Minister said, if there is a violation of any law in letter or in spirit, stringent action will be taken. The matter comes after the Confederation of All India Traders had written to the Ministry seeking an audit into the business model of all e-commerce firms and the foreign-owned Amazon and Flipkart in particular. The letter had asked the government to verify Amazon and Flipkart`s claims that individual brands are offering discounts and not them.
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