Flipkart defends charging lower fees for sellers

Flipkart has defended its stance of charging lower operating fees for sellers who reduce their products’ prices on the platform. The e-commerce company alongwith Amazon is locked in a court battle with the Competition Commission of India against the latter’s attempt to restart investigations into their business practices. Flipkart and Amazon have often been accused by brick-and-mortar Indian retailers of bypassing FDI rules to favor a few sellers and influencing products’ prices on the platform. However, both players have refuted these allegations.

Flipkart's counsel Harish Salve told a two-judge bench that the e-tailer sees nothing wrong in telling sellers they will be charged a lower fee, if they reduce their prices. However, Khandelwal criticized Flipkart’s stance saying, the FDI policy specifically provides marketplace should not influence prices.