Traders’ body alleges violation of FDI policy by Flipkart, Amazon; companies reject

Traders’ body CAIT on Friday alleged that e-commerce firms Amazon and Flipkart have violated foreign direct investment norms by indulging in predatory pricing, a charge which was rejected by the two companies. The Confederation of All India Traders (CAIT) flagged these allegations in a meeting called by the Department for Promotion of Industry and Internal Trade (DPIIT) here, which was attended by representatives of Flipkart and Amazon.

“We are not satisfied by the result of the meeting. We placed various evidences of predatory pricing, deep discounting, controlling inventory by portals, exclusivity and total violation of FDI policy by both Amazon and Flipkart,” CAIT Secretary General Praveen Khandelwal told reporters after the meeting. He said both the portals denied all charges and stated that they comply with the policy in its letter and spirit.