CCI dismisses unfair trade complaint against 23 e-tailers

Fair trade regulator Competition Commission of India (CCI) has rejected a complaint that alleged unfair trade practices by 23 retailers and sellers on ecommerce websites, including Ebay India and Amazon Seller Services Pvt. Ltd.

The complainant alleged that the 23 entities were trying to increase their business illegally and were fooling consumers by using unfair trade practices.

Rejecting the complaint, the CCI said it appears the allegations are regarding abuse of collective/group dominance. However, abuse of collective/group dominance is not covered under the “(Competition) Act,” the regulator said in its order dated 26 July.

The complaint was also against Clues Network, TSG Fashions, One 97 Communications, Jasper Infotech and Cloudtail India, among others.

According to the CCI, the allegations are mainly in the nature of deficiencies in the provision of goods and services and do not bring out any competition issues.

Besides, the CCI noted that the informant has not alleged any anti-competitive agreement and there was no evidence of any such conduct against the ecommerce players.

There are a number of competitors selling similar goods and services, both online and offline, CCI said, adding that none of the 23 entities “are in the dominant position in the market”.

“In the absence of dominance, the question of abuse does not arise,” the regulator said.

The CCI said no case of contravention of the provisions of either Sections 3 or 4 of the Competition Act is made out against the opposite parties. While Sections 3 of the Competition Act pertains to anti-competitive practices, Section 4 relates to abuse of dominant position.

Source: Livemint