Flipkart defends charging lower fees for sellers

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.

Author’s Posts