Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM

Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM

SUMMARY

Important to take care of small traders and retailers because this country needs support for small traders, said Nirmala Sitharaman

With this, Sitharaman has become the second union cabinet minister, after Piyush Goyal, in recent weeks to slam ecommerce platforms over predatory pricing tactics

This comes just days after the CCI found that Flipkart and Amazon India flouted competition laws by prioritising certain sellers and listings

Finance minister Nirmala Sitharaman said that the government will “give a serious thought” to safeguarding the interests of small traders and traders if predatory pricing tactics of quick commerce and ecommerce players impact their businesses. 

“It’s important to take care of small traders and retailers… because this country needs support for small traders… Where because of predatory pricing or deep pockets, their businesses are getting affected, we will have to give a serious thought. The commerce and industry minister remains seized of the matter,” Sitharaman said in response to a question on Monday (September 16) at an event organised by News18. 

With the thinly veiled criticism, Sitharaman has become the second union cabinet minister in the past few weeks to slam ecommerce platforms such as Walmart-backed Flipkart and Amazon India.

Last month, union commerce minister Piyush Goyal said that the massive growth of ecommerce was not a matter of pride but a matter of concern, adding that decline of small traders due to the rise of the sector highlights an imbalance between small and large retailers.

He also said that Amazon India’s plans to invest billions of dollars in India were guided by its strategy to offset its losses. However, he later clarified that the Centre is not against online marketplaces but wants them to operate fairly.

It is pertinent to note that the Competition Commission of India (CCI) last week reportedly found that Flipkart and Amazon India flouted competition laws by prioritising certain sellers and listings. 

It also found that major smartphone makers like Samsung, Xiaomi, and others exclusively rolled out their products in partnership with the two ecommerce platforms in contravention of Indian antitrust laws. 

Owing to this, trade body CAIT’s general secretary emeritus and BJP MP Praveen Khandelwal called on the Centre to ban the two ecommerce platforms from operating in the country. Later, he also urged Goyal to ban the upcoming festive season sales citing detrimental impact on India’s small retailers.

Recently, the All India Consumer Products Distributors Federation (AICPDF) also called on the Centre to ramp up scrutiny of the unchecked growth of quick commerce companies such as Blinkit, Swiggy Instamart, Zepto, and Flipkart Minutes. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM-Inc42 Media
Govt To Safeguard Small Retailers’ Interests If Quick Commerce Platforms Employ Predatory Pricing: FM-Inc42 Media
You’re in Good company