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| 24 October, 2020, 01:59 PM IST | E-Paper
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    PREDATORY PRICING

    View: Our problem is not predatory pricing but the predatory state

    The popular narrative on predatory pricing is simple, and thus attractive. But it's wrong at several levels.

    Some e-retailers indulged in predatory pricing: Piyush Goyal

    "I would like to highlight the adverse impact of predatory pricing indulged by s...

    • Commerce & industry minister warns of strict action if online marketplaces don’t comply with rules.

      Retailers allege violation of FDI rules via deep discounting; DPIIT looking into the matter.

      Speaking at the Raisina Dialogue 2020 in New Delhi, Goyal had on Thursday said that Amazon is not doing a favour to India when they invest a billion dollars in the country.

      "I would like to give a word of caution here. Though your (insurance brokers) share is very high in group health insurance, the loss ratio in group health insurance is also very high. Probably, it is not very sustainable at present," he said at an event organised by Insurance Brokers Association of India.

      "We need to bring equilibrium within the market. Can't say predatory pricing is the only reason of ill health of airlines, it is one of the reasons. After discussion with airlines, the trend of predatory pricing has reduced. Our advice to airlines is to charge realistic fares," Aviation Minister Hardeep Puri said.

      Terming e-commerce firms "global economic terrorist" and "economic intruders, tax offenders and policy & law violators", the Confederation of All India Traders (CAIT) in a letter sent to Commerce Minister Piyush Goyal demanded early enforcement of e-commerce policy and national retail policy. It also called for constituting an e-commerce ombudsman.

      "As a result of several measures taken by the government, the time taken for examination of patent applications has been brought down from 72 months in 2014-15 to around 24-36 months at present," he said during Question Hour.

      "Against Sl. No. 15.2.3, for entry (p), the following entry shall be substituted, namely-(p) e-commerce marketplace entity with FDI shall have to obtain and maintain a report of statutory auditor by 30th of September every year for the preceding financial year confirming compliance of the e-commerce guidelines," the gazatte notification said

      The development comes after industry associations of retail, mobile and FMCG sectors met commerce and industry Piyush Goyal.

      The Confederation of All India Traders (CAIT) claimed that small retailers have suffered at the hands of Amazon, Flipkart and other e-commerce portals for the last one year, leading to decline in their business. "These companies can easily be termed as economic terrorists and a major roadblock in making India a USD 5 trillion economy vision of PM Modi," the CAIT said.

      The government had last month asked top two e-commerce firms Flipkart and Amazon to share details of their top five sellers and total business quantum for each seller, variations of commission agreements they have with various sellers, and how investments from their parents are disbursed.

      "Some representations have been received in this department, complaining that e-commerce companies are offering deep discounts, indulging in predatory pricing, engaging in B2C business, exercising control over inventory and influencing the prices of goods sold on the platform," Piyush Goyal told Rajya Sabha.

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