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E-commerce companies to challenge the judgment given in favor of CCI

By BFTLR Team

Commerce & Industry minister Piyush Goyal said that instead of forum shopping they should let the Competition Commission of India (CCI) investigate the anti-competitive practices of e-commerce companies like Amazon & Facebook. They are trying to evade the court proceedings which say that they are indulged in predatory prices that are going to influence market behavior. Their algorithms are designed in such a way that would influence consumer choices which are not permitted by Indian law. The division bench of the Karnataka high court consisting of Justice Satish Chandra Sharma & Justice Nataraj Rangaswamy reserved its judgment on June 25 after hearing the arguments presented by Amazon, Facebook & CC. The issue was raised 18 months ago when the Delhi Vyapar Mahasangh (DVM) a group representing small & medium business owners in the national capital, submitted a petition with CCI against the country’s two biggest e-commerce platforms accusing them of anti-competitive practices, predatory pricing & preferential treatment to sellers among others. The Karnataka high court gave the judgment in favor of CCI on June 11. However, Facebook & Amazon challenged the judgment that was pronounced by Justice PS Dinesh Kumar. The reality of these big e-commerce companies is being exposed in front of the world. As a precautionary measure, the Indian government issued a draft of Consumer Protection (e-commerce) rules, 2020 that will change how e-commerce companies work in India. The government is trying to ensure that no logistics service provider of a marketplace shall enable e-commerce entities to differentiate between sellers of the same category. The government is trying to curb the activities of preferring certain vendors & online discounting that have stunted the growth of offline retailers.

Source: Money Control

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