The Competition Commission of India (CCI) has discarded all the unfair business practice allegations against online ecommerce retailers Flipkart, Snapdeal, Amazon, Jabong and Myntra due to lack of prima facie evidence of violations.
It was alleged that the e-commerce giants and product sellers entered into exclusive agreements to sell products exclusively on select portals.
After investigating the case, the fair trade regulator has ruled that these entities did not violate competition norms by indulging in cartelization or by abusing their dominant position.
“The commission is of the prima facie view that no case of contravention of the provisions of either section 3 or section 4 of the Act is made out against the opposite parties,” CCI said in the order.
In recent months, there have been rising concerns that discount sales launched by various e-commerce websites, including Flipkart were anti-competitive in nature.
The CCI further explained that the arrangements do not create any entry barrier for new entrants. It seems very unlikely that an exclusive arrangement between a manufacturer and an e-portal will create any entry barrier as most of the products which are illustrated in the information to be sold through exclusive e-partners face competitive constraints.