Ecommerce companies will face action for any unfair practice


By MYBRANDBOOK


Ecommerce companies will face action for any unfair practice

Competition Commission of India’s Chairman Ashok Kumar Gupta said that any violation of competition law by ecommerce companies will be dealt with firmly. The companies should ensure that their conduct and policies are in accordance with the law, he added.

 

“Owing to their innate features, such as network effects and data-driven complementarities, digital markets typically yield high concentration and are often winner-take-all markets. The task for CCI, like any other competition authority, is to ensure that these concentrated digital markets remain open to new entrants and that competition on and between the digital platforms is on merits,” he said.

 

This became more critical during the pandemic because an increasing proportion of economic activity is being channelled through the digital avenue and a small number of firms have taken key intermediation positions.

 

“This shift in markets is posing challenges for lawmakers and enforcers as to how to address the consequent bargaining power imbalance and information asymmetry between platforms and their business users,” he said. “Non-enforcement tools help in engaging with stakeholders without any regulatory pressure and highlighting to them the potential areas of concern,”

 

Gupta said he won’t comment on specific cases, but added that rulings are intended to provide regulatory guidance to stakeholders.

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