Predatory pricing and future actions

 

Predatory pricing and future actions

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Mere cries or alert sounds won't resolve serious issues; what we need is decisive action from the authorities. Recently, Union Commerce Minister Piyush Goyal voiced concerns about Amazon, the largest e-commerce platform. While raising awareness is important, the Minister and his government are responsible for shaping policies and should focus on action rather than mere words. Minister Goyal expressed shock over the predatory pricing practices of e-retailers, which is a long-term strategy to dominate the market by driving out small retailers, ultimately leading to monopolistic control that dictates terms to both producers and consumers.

It’s worth noting that the Confederation of All India Traders has been pleading for years for action against predatory pricing, yet the government has not taken the issue seriously. Free competition is the lifeblood of a market economy, and Section 4 of the Competition Act, 2002, prohibits unfair or discriminatory pricing through the abuse of a dominant position. The Competition Commission of India (CCI) is tasked with curbing monopolies, but the law itself is currently inadequate to effectively address predatory pricing.

Minister Goyal's outburst likely stems from the shortcomings of the Foreign Direct Investment (FDI) policy in the e-commerce sector. India's retail market is immense, valued at $900 billion, with around 12 million small stores that provide livelihoods, serve as public gathering spots, and offer customers reasonably priced products. The government must ensure a balanced approach to protect these interests, rather than merely voicing concerns in forums that serve political ends. Ultimately, the government has the power to create or dismantle policies and laws, and it must act responsibly to safeguard the interests of all stakeholders 🤔