Published
Jan 16, 2019
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Snapdeal complaint against KAFF dismissed by CCI

Published
Jan 16, 2019

On January 15, the Competition Commission of India (CCI) dismissed a complaint of unfair business practices by the e-commerce platform Snapdeal against KAFF.

Snapdeal’s 2014 complaint was recently rejected by the CCI - Snapdeal- Facebook


The CCI, a fair trade regulator, dismissed a complaint by the e-commerce fashion, electronics, and white goods retailer Snapdeal with a ruling that sets a precedent for future cases. Snapdeal alleged that KAFF’s imposition of minimum resale price maintenance (RPM) was an unfair business practice. However, the court ruled that the "conduct of KAFF did not demonstrate any adverse effect on the competition," as reported by the Press Trust of India.

The complaint was filed by Jasper Infotech Pvt Ltd, the owner of Snapdeal, in 2014 and stated that KAFF had imposed a minimum price on its goods and restricted the sale of such goods for less than that price, threatening to half online sales if the limit was surpassed. The CCI investigated the matter to see whether the RPM interfered with the Competition Act and found that it did not with a 28 page order. 

As the CCI found no contravention of Section 3 of the Competition Act with KAFF’s business practices, Snapdeal’s complaint was dismissed.

The case sets a precedent for online RPM, which fits with the government’s stance against deep discounting favoured by some of the country’s larger e-commerce platforms.

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