CCI warns e-com of strict measures

28 December 2021, Mumbai:

The Competition Commission of India (CCI) has warned e-commerce businesses that it will take strict action against any violations. It has urged them to adhere to regulations and expects them to bring their conduct and policies in alignment with competition law and the regulatory guidance provided through orders.

The CCI has requested e-commerce platforms to enforce self-regulatory measures under its advocacy mandate.

These measures include: data sharing, search ranking, discount policies, and user-review mechanisms, among others. Owing to their innate features, such as network effects and data-driven complementarities, digital markets typically yield high concentration and are often winner-take-all markets.

The task for CCI, like any other competition authority, is to ensure that these concentrated digital markets remain open to new entrants and that competition on and between the digital platforms is on merits. The message is that legitimate business practices will not be interfered with, but violation of competition law will be dealt with firmly.

India’s digital market was significantly boosted by the pandemic as shoppers stuck at home embraced online shopping.

However, logistics challenges expounded by Covid gave large e-commerce businesses an advantage as they had greater logistics capabilities and this led to a small number of businesses gleaning a high percentage of online sales, further solidifying their positions at the top of the market.

SOURCE: FASHION NETWORK (The news article has not been edited by DFU Publications staff)

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