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DPIIT officials meet Amazon, Flipkart following complaint by CAIT

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today Oct 11, 2019
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The Department for Promotion of Industry and Internal Trade (DPIIT) held a meeting with officials from e-commerce biggies like Amazon and Flipkart following a complaint by the Confederation of All India Traders (CAIT).
 

DPIIT officials meet Amazon, Flipkart following complaint by CAIT


CAIT in its complaint to DPIIT had stated that Amazon and Flipkart are violating foreign direct investment rules through deep discounting. It had also said that the e-commerce companies are involved in predatory pricing, loss funding and exclusivity of various products.
 
Acting on the complaint and to seek clarity on the matter, senior officials from DPIIT met with representatives from the e-commerce firms. The meeting was chaired by an additional secretary-level officer of the department.

Commenting on the meeting, Amazon spokesperson said, “We had an open and transparent discussion with DPIIT officials. We thank the ministry of commerce and industry for the opportunity and we are always available for further engagement as needed.”
 
The new foreign direct investment policy which came into effect earlier this year does not allow marketplaces to sell directly to customers through its subsidiaries. The government had introduced the policy following complaints from trader across India and the introduction of the same had led to a partial slowdown in the e-commerce industry.
 
However, etailers have bounced back and have been reporting high sales despite the economic slowdown in the country.
 
CAIT still feels that e-commerce platforms and their deep discounting methods are hurting the retail traders, vendors and brick-and-mortar stores which is why it has sought a permanent solution to the problem from the commerce and industry ministry.

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