Government Likely to Further Examine E-Commerce Companies on Predatory Pricing

  • The replies have been furnished and are being examined.
  • The government is also mulling the feasibility of setting up a regulatory authority to settle disputes related to e-commerce
(pic credits – pixabay)

According to a report by the Hindu Business line, the government may further ask e-commerce companies such as Flipkart and Amazon for more information on their operations in India to examine whether they are indulging in predatory pricing.

Questions to e-commerce companies

A government official told Business Line that they had sent some questions to e-commerce companies on their operations such as their top sellers and pricing aspects. The replies have been furnished and are being examined.

Earlier in November, e-commerce companies including Amazon and Flipkart have submitted their responses to the queries sent to them by the Department for Promotion of Industry and Internal Trade (DPIIT) on their operations in India, which are now being vetted by the government to see if existing rules might have been flouted.

The queries were regarding top sellers, pricing of goods by vendors, capital structure and inventory management system. They were posed after the complaints, made by brick-and-mortar retailers as well as online vendors alleging that these companies may be violating FDI rules.