Walmart’s Flipkart sees nothing wrong in offering to cut charges for sellers on its platform if they lower product prices, its lawyer told an Indian court on Monday, June 21, reported Reuters.
Flipkart and Amazon are in a court battle against the Competition Commission of India’s (CCI) bid to restart an investigation into their business practices, after a judge in early June dismissed the companies’ pleas.
Both Flipkart and Amazon have for years battled accusations from brick-and-mortar Indian retailers that they bypass the foreign investment law by favoring some sellers and influencing prices of products, which are prohibited. The companies state that they comply with all laws.
Arguing against the resumption of the antitrust investigation, Flipkart’s counsel Harish Salve told a two-judge bench in the southern state of Karnataka that he sees nothing wrong in telling the sellers of Flipkart marketplace that they will be charged a lower fee if they reduce their prices.
Referring in particular to the Hindu festival of Diwali when websites organize sales, he added, “I tell my sellers at a time like Diwali if you reduce your prices, I will give you a reduction in rent. What’s wrong?”
The comments drew immediate criticism from the Confederation of All India Traders, which is party to the ongoing litigation opposing the e-commerce giants, claiming the practices were prohibited under India’s foreign direct investment (FDI) rules.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI