In this Roundup, we highlight the main developments in Indian competition law in January 2020.
E-Commerce Marketplaces under Scrutiny
The Competition Commission of India (CCI) has directed an investigation into allegations of anti-competitive agreements between e-commerce marketplaces Amazon and Flipkart, on the one hand, and sellers on these marketplaces, on the other. A Delhi based traders’ body alleged that Amazon and Flipkart offered deep discounts through select preferred sellers who also benefited from preferential listings and exclusive tieups (such as with OEMs to be the exclusive seller for newly released phones), resulting in competitors being excluded from the market. It was also alleged that Amazon and Flipkart were jointly dominant and were abusing their dominance. In a marked shift from previous dismissals of allegations against these marketplaces, the CCI noted prima facie that competition between the marketplaces did not reduce the potential effect on competition as they followed the same practices. It also noted, in light of linkages between these preferred sellers and the marketplaces coupled with the allegations above, that the effect on competitors also needed to be investigated. However, keeping with past practice, the CCI declined to address allegations of joint dominance as this concept was not recognized in the Competition Act
This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
The Bar Council of India does not permit solicitation of work and advertising by legal practitioners and advocates. By accessing the Shardul Amarchand Mangaldas & Co. website (our website), the user acknowledges that:
The user wishes to gain more information about us for his/her information and use. He/She also acknowledges that there has been no attempt by us to advertise or solicit work.
Any information obtained or downloaded by the user from our website does not lead to the creation of the client – attorney relationship between the Firm and the user.
None of the information contained in our website amounts to any form of legal opinion or legal advice.
All information contained in our website is the intellectual property of the Firm.