Flipkart calls Goqii allegations “baseless”

By

Isabelle Crossley

Published
May 27, 2019

Flipkart has claimed its innocence in response to allegations by smart wearables brand Goqii Technologies’ that it violated foreign direct investment regulations. Flipkart said that the prices at which products are sold on its platform are decided by the resellers and not Flipkart, thus meaning that Flipkart did not violate any agreement concerning pricing. 

Flipkart called Goqii’s recent allegations that it violated the government FDI norms “baseless”, TNN reported.

Goqii had alleged that Flipkart was selling its smart watches on its platform at deep discounted prices which Goqii maintained harmed its business as it led other buyers to cancel orders and violated previously agreed contract terms. Goqii issued a legal notice against Flipkart on May 18.

Government sources told TNN that, following Goqii’s legal notice, Flipkart contacted that Department for Promotion of Industry and Internal Trade and the Competition Commission of India to defend its position. 

"We urge Flipkart not to use its position of dominance to compromise the business of small businesses,” Goqii’s founder and CEO Vishal Gondal told the Times of India. “They are not acting in accordance with their contract with Goqii." 

The business also issued a legal reply to Flipkart’s statement of innocence on May 26 to show that it stands by its accusations. Goqii also maintains that it has email evidence to show that Flipkart does indeed control its pricing and is therefore guilty of deep discounting.