Foreign E-commerce Giants Dodge Regulations To Dominate Indian Market: CAIT

Praveen Khandelwal emphasised that this "intricate web” entails cooperation between e-commerce titans and mobile corporations, posing a threat to the livelihoods of small traders

Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) and a Lok Sabha candidate for the BJP accused foreign e-commerce giants such as Amazon and Walmart-owned Flipkart of sidestepping regulations and laws in their aggressive efforts to dominate the Indian market. He alleged that these companies frequently engage in unethical business practices.

In response to a television media report suggesting that the Competition Commission of India (CCI) has uncovered suspected irregularities in its investigation into e-commerce companies such as Amazon and Flipkart, along with their associations with mobile manufacturers, Khandelwal told the news agency IANS on Saturday that this "nexus" between e-commerce behemoths and mobile firms "undermines the country's broader interests."

“For years, we have been highlighting the persistent problem of foreign e-commerce companies circumventing rules and laws in their relentless pursuit of capturing the Indian market, often resorting to unethical business practices,” remarked Khandelwal.

He emphasised that this "intricate web” entails cooperation between e-commerce titans and mobile corporations, posing a threat to the nation's broader interests and endangering the livelihoods of small traders. In February of this year, the retail traders’ association penned a letter to the CCI, urging immediate action in the Delhi Vyapar Mahasangh case concerning the anti-competitive conduct of Amazon and Flipkart.

In a letter addressed to CCI Chairperson Ravneet Kaur, CAIT emphasised that the market regulatory body “must attach utmost priority to the case and pass final penalty order and direction to Flipkart and Amazon to stop their illegal activities, as the outcome of the case has a serious bearing on the survival of lakhs of retailers and their families."

The CAIT letter alleged that “these foreign entities have indulged in monopolisation of sales of mobile phones through exclusive launch.”

Khandelwal stressed the critical necessity for prompt and definitive action to be undertaken against these companies at this juncture. “Once the general elections are concluded and if elected as an MP, I am committed to advocating for addressing this issue,” he said.