Flipkart, Amazon under scanner over predatory pricing: Piyush Goyal

piyush goyalThe centre is probing e-commerce giants Flipkart and Amazon over predatory pricing, said Union Minister of Commerce Piyush Goyal. 

Warning the sites of strong actions for violation of any law, the minister said a detailed questionnaire had been sent to the companies and the revert is awaited.

As per the media reports, the e-commerce sites have grossed around $3 billion in gross merchandise value during the festive sales held over the past fortnight, which typically report over half of their annual sales.

“E-commerce companies have no right to offer discounts or adopt predatory prices. Selling products cheaper and resulting the retail sector to incur losses is not allowed,” Goyal told media.

They are not allowed to own products and sell them, they are just a medium to help sellers connect to the potential buyers, said the minister.

Without disclosing the complete details, Goyal said that his ministry has received complaints from the traders body CAIT over alleged violation of norms by the e-commerce sites..

“A detailed questionnaire has been sent to them. Today or tomorrow, a supplementary questionnaire will also be sent,” he said and reminded that he had earlier also warned these e-commerce players.

“We will take stringent action against them, if there is violation of any law in letter or in spirit. The law is clear. Action will be taken as per the law,” he said

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