Fair trade regulator CCI on Monday ordered a probe against Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers.
The order follows a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders.
"The Commission observes that the exclusive arrangements between smartphone/mobile phone brands and e-commerce platform/select sellers selling exclusively on either of the platforms, as demonstrated in the information, coupled with the allegation of linkages between these preferred sellers and OPs (opposite parties) alleged by the Informant merits an investigation," the Competition Commission of India (CCI) said in an order.
It needs to be investigated whether the alleged exclusive arrangements, deep discounting and preferential listing by the OPs are being used as an exclusionary tactic to foreclose competition and are resulting in an appreciable adverse effect on competition, it added.
