CAIT to demand audit of Amazon, Flipkart's business models
Friday - October 11, 2019 8:48 pm , Category : BUSINESS
New Delhi, Oct 11 (IANS) The Confederation of All India Traders (CAIT) will seek an independent audit of the business models of both Amazon and Flipkart on the charges of predatory pricing and deep discounting, amongst others.The development came on Friday, after a meeting was called by Commerce Ministry over the issue with Amazon, Flipkart and CAIT. The DPIIT (Department for Promotion of Industry and Internal Trade) held a "face to face" meeting between representatives of CAIT, Flipkart and Amazon here."We placed various evidences of predatory pricing, deep discounting, controlling inventory by portals, exclusivity and total violation of FDI policy of the Government by both Amazon and Flipkart," CAIT Secretary General Praveen Khandelwal was quoted as saying in a statement. He said that both portals denied all charges and said that they comply FDI policy in its "letter & spirit". According to Khandelwal, on the charges of "deep discounting", both portals said that "they are not offering discounts and it is the brands which offer discounts". "CAIT will place the entire matter once again to (Commerce Minister) Piyush Goyal and ask for independent audit of both Amazon and Flipkart business models," Khandelwal said.Besides, CAIT will ask major "brands" to clarify "their position on the claims of Amazon and Flipkart". "If need be, CAIT will not hesitate to approach Competition Commission of India or route of court to make brands clarify their position. Whoever is giving deep discount must be flouting one or the other law or policy and CAIT will seek action against them," Khandelwal said.CAIT has blamed predatory pricing by these portals for the closure of more than 30,000 mobile shops in the country and to cause a loss of about 30 per cent business of offline market.
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