CCI Starts Investigating Small Businesses As Ecommerce Players Hold Back Information
People, who are privy to the matter, told that some of these digital platforms are not fully cooperating with the competition body (CCI) in sharing information
The body is scrutinising ecommerce giants on allegations of misusing their dominance in the market and giving preferential market access to selected vendors
In April this year, CCI raided several small businesses particularly SMEs who were selling commodities on the digital platforms and seized the said information documents
The Competition Commission of India (CCI) is presently investigating various small and medium enterprises (SMEs) that are acting as sellers on ecommerce companies such as Amazon and Google in the context of breaching competition laws.
People, who are privy to the matter, told ET that some of these digital platforms are not fully cooperating with the competition body (CCI) in sharing information. Thus, CCI is trying to gather that information from SMEs that are working on these platforms.
On this development, lawyers quoted ET saying that many online vendors have been asked to share required information with CCI in the past few months. These queries have been made related to input expenses, and details of their business arrangements with online ecommerce platforms.
The competition body is scrutinising ecommerce giants on allegations of misusing their dominance in the market and giving preferential market access to selected vendors. To conduct the investigation, the CCI requires information from digital platforms relating to business transactions such as sales figures, input costs and other expense statements.
However, digital platforms are unwilling to share information with CCI for various reasons. Primarily, if a digital platform cooperates with the competition body and shares requisite data then it becomes the first among all digital platforms to comply with the government body. Following this, other digital platforms will be pressurised to follow the suit.This practice will not only be followed in […]
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