CCI monitors discounts given by ecomms

In order to keep possible anti-competitive behaviour in the ecommerce sector by players such as Amazon and Flipkart at bay, the Competition Commission of India is monitoring deep discounting, especially in light of the upcoming festive season. The country’s competition regulator is of the opinion that deep discounts could make some businesses unviable since it erodes the value of products and services in the mind of the consumer if done for prolonged periods. 

“By offering deep discounts ranging from 10-80% on their ecommerce portals, these companies are clearly influencing the prices and creating an uneven playing field, which is in direct contravention of the (FDI) policy,” cautioned the Confederation of All India Traders (CAIT) in its letter to commerce and industry minister Piyush Goyal on Friday.