More hassles for e-tailers as traders up ante against predatory pricing

E-commerce giants, Amazon and Flipkart are likely to be brought under enhanced government regulations after various trader associations have accused them of “predatory pricing” and flouting the foreign direct investment norms.

The traders have questioned the reported huge losses incurred by the online marketplaces to the tune of thousands of crores, which they alleged is due to the deep discounts on the products. Amazon has reported a loss of Rs 5,685 crore in FY19 whereas Flipkart recorded a loss of Rs 3,863.8 crore as per the regulatory filings of both the companies.

The Confederation of Indian Traders (CAIT) has said that the predatory pricing on the products during the festival season has decreased the sales of retailers by 50 per cent as well as led to huge GST revenue loss for the government.