FIRST Files Fresh CCI Complaint Against Flipkart Over Alleged Deep Discounting
FIRST has filed a fresh antitrust complaint with the CCI against Walmart-owned Flipkart, alleging deep discounting and inventory-led operations disguised as a marketplace model, while urging a formal investigation into its business practices.
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The Forum for Internet Retailers, Sellers and Traders (FIRST) has filed a new antitrust complaint with the Competition Commission of India (CCI) against Walmart-owned Flipkart, claiming deep discounting and anti-competitive practices that it alleges hurts more than 14 lakh online sellers.
The complaint, filed under the banner of Sebi-registered India SME Forum, named Flipkart, its owner Walmart and other associated entities, including Myntra and Ekart Logistics. FIRST urged the competition watchdog to ask its Director General to probe the allegations.
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Inventory Allegations:
At the heart of the complaint is the accusation that Flipkart is running an inventory-led business while presenting itself as a marketplace platform.
The filing said Flipkart has structured its operations in a way that allows it to operate as an inventory-based model in substance, although it is classified as a marketplace under India’s foreign direct investment (FDI) rules governing e-commerce.
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CCI Complaint:
FIRST has argued that such practices skew the level playing field and disadvantage independent sellers by allowing preferential treatment and deep discounting.
The complaint comes at a time when Flipkart has been stepping up initiatives to help sellers on its platform. The company recently expanded the zero-commission rule to include all fashion items at all price points.
The benefit earlier was only available for apparel and accessories priced below Rs 1,000. With the expanded policy, about 90,000 active sellers in the fashion category including micro, small and medium enterprises (MSMEs), direct-to-consumer (D2C) brands and regional labels are expected to benefit from the removal of commission charges.
The Competition Commission of India has yet to say if it will order an investigation into the fresh complaint.
