industry

CCI studying e-commerce to identify impediments to competition, understand market dynamics


India’s competition watchdog is conducting a market study on e-commerce in the country to better understand the competitive dynamics of the Industry according to a government statement.

The Competition Commission of India (CCI) was also part of inter-ministerial meetings on the drafting of the government e-commerce policy. The study will focus on goods such as electronics and services such as travel and food delivery which have seen the greatest growth in the e-commerce business.

“In view of the rapid growth of electronic commerce and the rising importance of
online trade in a large number of goods and services in India, the study will allow the Commission to develop a better understanding of the functioning of e-commerce in the country and its implications for markets and competition,” the release said.

The CCI will consult e-commerce platforms such as Flipkart and Amazon as well as, manufacturers, wholesalers/retailers, hotels, restaurants, payment platforms and industry associations for the market study.

The CCI will study emerging market trends, particularly those in distribution in e-commerce as well as the business practices and contract provisions in the e-commerce industry to examine the implications for competition. The CCI will also seek to identify impediments to competition as well as key areas for enforcement of competition law and areas requiring greater competition advocacy.

The CCI had in November last year stated that no online marketplace platform commanded a dominant position in the market at the time in an order rejecting complaints that Flipkart and Amazon had violated competition regulations.

“Looking at the present market construct and structure of online marketplace platforms market in India, it does not appear that any one player in the market is commanding any dominant position at this stage of evolution of market,” the Commission had said in its ruling.

The CCI also clarified that this study was not a part of any investigations or inquiries pending with the commission.





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