IAMAI hails CCI order to close investigation against e-commerce


MUMBAI: The Internet and Mobile Association of India (IAMAI) has welcomed the Competition Commission of India's (CCI) decision to quash charges of cartelization and anti-competition practices by e-commerce companies.

IAMAI hopes that this will finally put a stop to motivated charges brought up regularly by certain interested groups against e-commerce companies. IAMAI is of the view that this order will allow e-commerce companies to continue to provide innovative services to consumers in a free and fair manner.

In recent months, charges have been brought by various malcontent elements that discount sales launched by numerous e-commerce websites were anti-competitive in nature. It was also alleged that e-commerce websites and online product sellers entered into exclusive agreements, thereby leading to market dominance.

The CCI has ruled that e-commerce companies did not violate competition norms by indulging in cartelization or by abusing their dominant position. ?The Commission is of the prima facie view that no case of contravention of the provisions of either section 3 or section 4 of the Act is made out against the opposite parties,? it said in its order.

With regard to exclusive agreements, the CCI said that such pacts need not result in appreciable adverse effect on competition. ?It does not seem that such arrangements create any entry barrier for new entrants. It seems very unlikely that an exclusive arrangement between a manufacturer and an e-portal will create any entry barrier as most of the products which are illustrated in the information to be sold through exclusive e-partners face competitive constraints,? the order stated.

In fact, the CCI order praises the e-commerce companies by observing that online distribution channel provide an opportunity to the consumers to compare the prices as well as the pros and cons of the product. Furthermore, through the option of delivery right at their door steps, consumers have the opportunity to accept the purchase at their convenience and do not need to set aside a couple of hours at a stretch to make the purchase through a brick-and-mortar retail outlet. Therefore, at this stage, it does not appear that the exclusive arrangement between manufacturers and e-commerce/portal companies lead to Appreciable adverse effect on competition (AAEC) in the market.

Latest Reads

Jio and organised retail add to RIL's growth in second quarter

Mukesh Dhirubhai Ambani’s largest startup in the world in the form of Reliance Jio Infocomm Ltd or Jio has only gone from strength to strength since its inception. The mobile and broadband subsidiary of Reliance Industries Ltd (RIL), which is already the largest mobile data carrier in the world...

iWorld Telecom
Netflix adds 6.96 mn subscribers in Q3

After a disappointing Q2 result, global streaming giant Netflix has again beat all expectations in its Q3 earnings. Netflix has not only added 6.96 million subscribers in this quarter but it has reported $4 billion streaming revenue for the quarter which is up 36 per cent year over year.

iWorld Over The Top Services
RIL close to buying majority stakes in DEN, Hathway

Reliance Industries is expected to buy controlling stakes in two of India’s largest cable TV and broadband service providers

iWorld Telecom
ZEE5 appoints Taranjeet Singh asChief Revenue Officer& Business Head - New Projects

ZEE5 India, India's second largest OTT platform known for its muscle in multi-lingual content, today announced the appointment of Taranjeet Singh as the Chief Revenue Officer & Business Head – New Projects for the platform.

iWorld Over The Top Services
Netflix Q3 app revenue up 90% y-o-y

Netflix's financials show it had a strong Q3 on mobile. The app dramatically observed an upswing by generating gross $243.7 million which represented a 90 per cent year-on-year increase as compared to Q3 2017. The popular streaming app has surpassed an estimated $1.4 billion in total gross revenue...

iWorld Over The Top Services
AVIA announces new members

The Asia Video Industry Association (AVIA) today announced that Netflix has joined as a Patron member, alongside Globe Telecom as a Corporate member, strengthening the mandate of the Association to represent the interests of companies across the broader video industry in Asia.

iWorld Telecom
3 more quarters of losses for telecom industry, says COAI

According to COAI director general Rajan Mathews, the telecom sector will probably experience three or more quarters of losses, as the telcos remain under pressure due to high levies and unsustainable tariffs.

iWorld Telecom
India’s Porus Rises In the land of the Rising Sun- Japan

One Life Studios premium historical drama series Porus, which depicts the legendary warriors battle against the world’s biggest conqueror Alexander the great will now be showcased in one of the top premium OTT platforms in Japan- Hulu.

iWorld Over The Top Services
Data of 29 mn users hacked says Facebook

MUMBAI: Social media company, Facebook, on Friday stated that hackers had accessed 29 million user data in the breach which was disclosed late last month. Facebook previously had said that 50 million users were affected due to the data breach.

iWorld Social Media

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories