Flipkart and Amazon Did Not Violate Any Rules, CCI Confirmed

Amazon and Flipkart (owned by Walmart) are two rivals in the Indian market; in a ruling on Tuesday, the Competition Commission of India (CCI) said both had not violated The rules governing the choice of brands and employees.

On behalf of more than 3,500 online sellers across the country - the All India Vendors Suppliers Association (AIOVA) - claimed that Flipkart is doing business unfairly and using its position to support sellers that it chooses. However, the CCI has denied AIOVA's allegations.

In contrast to AIOVA's accusation, Flipkart did not violate anti-trust laws of India, which says businesses do not take advantage of a dominant position in the market to commit unfair or discriminatory pricing.

According to the Commission's judgment, regarding the structure of the online sales market in India and at this stage of market evolution, there is currently no business or individual in the market that is likely to abuse its dominant position.

The AIOVA did not ignore Amazon, claiming that Amazon supported traders who were parts of its holdings, such as Appario and Cloudtail. But the commission added that, after careful scrutiny, the Amazon did not violate the rules.

One of AIOVA's lawyers, Chanakya Basa, said that the group had plans to file a request to change this decision.

The lawyer added that Flipkart admitted their position as the dominant player in the market, with their own words.

Neither Flipkart nor Amazon has any feedback on this information, we cannot contact them either. Previously, though, Amazon has denied AIOVA's allegations against it.

There are approximately 500 million people who use the Internet in India; hence, the online market in this country is developing rapidly. Morgan Stanley, a US-based multinational investment bank said that it is projected that the Indian e-commerce market will grow into a $200 billion market in the next ten years.