FIRST approaches CCI against Flipkart over alleged predatory business practices

The Forum for Internet Retailers, Sellers and Traders (FIRST) -- an association of online retailers under the India SME Forum -- has approached the Competition Commission of India (CCI) alleging that Flipkart engaged in predatory and discriminatory business practices that distorted competition on its marketplace, according to a report.

NDTV Profit reported that according to the complaint, FIRST alleged that Flipkart's GST avoidance created a pool of nearly Rs 3,000 crore, enabling the Walmart-owned e-commerce platform to offer deep discounts and undercut independent sellers.

The retailers' body also alleged that Flipkart gave preferential treatment to 33 select sellers, allowing them to list products below cost and placing other marketplace sellers at a competitive disadvantage.

FIRST further claimed that Flipkart was effectively operating an inventory-led model despite being permitted to function only as a marketplace under India's foreign direct investment (FDI) rules for e-commerce.

The association has urged the competition watchdog to investigate Flipkart, its parent Walmart, and group companies Myntra, Ekart and Cleartrip for alleged violations of the Competition Act.

However, responding to the allegations, Flipkart said it operates in compliance with all applicable laws and regulations and would cooperate with any regulatory process, according to the report.

"Flipkart operates in compliance with all applicable laws and regulations and will cooperate with any regulatory process, as required," a company spokesperson said in a statement.

The company said it currently enables more than 1.4 million sellers, most of them MSMEs, farmer producer organisations (FPOs) and small businesses to reach customers across India and remains focused on creating value for sellers, consumers and the broader digital commerce ecosystem.

The complaint comes as Flipkart prepares for a public listing and adds to the regulatory scrutiny facing large e-commerce platforms over allegations of preferential treatment, deep discounting and marketplace neutrality.

(Except for the headline, this article has not been edited by Education Post)