Indian Commerce Minister Piyush Goyal has accused the American ecommerce giants of being hot on Amazon and Walmart, accusing them of arrogance and violating local laws by setting predatory prices.
Companies are using their scales and access to large pools of low-cost capital to engage in “predatory pricing practices” to the detriment of mother-and-pop stores, Goyal said.
“Several of these large ecommerce companies came to India and in more than one way blew up the law of this country in a very disinterested way,” he said at a virtual event late Saturday night. “
“I have a lot of engagement with these big companies, especially American companies, and I see a bit of arrogance,” he said.
Goel did not directly name Amazon or Walmart’s Flipkart – India’s two most influential ecommerce players – nor did he repeal any laws. But his comments came amid growing outcry from small Indian traders and retailers, who have accused US giants of violating Indian consumer protection laws and competition laws.
Amazon and Flipkart did not immediately respond to requests for comment on Gial’s harsh criticism.
The two companies have denied allegations leveled against them by traders.
Goyal also criticized the courts for failing to conduct “forum shopping” and accept the investigation conducted by the Competition Commission of India (CCI).
Flipkart and Amazon filed a lawsuit against CCI’s bid to resume an investigation into silly-trade and business practices after a judge dismissed the agency’s original application earlier this month.
“I think if they have nothing to hide, if they practice honest business, why don’t they respond to the CCI?” In the virtual event organized by Stanford India Policy and Economics Club, Dr.
His comments came just days after India unveiled a new set of e-commerce rules that could undermine the ambitions of Amazon and Flipkart in India and force both to review some business structures.
Separately, in a letter to Prime Minister Narendra Modi on Sunday, the Common Federation of All India Traders accused e-commerce companies of treating India like a “banana republic” with weak laws.
The agency called on the government to ensure that the proposed e-commerce is not violated despite the lobbying efforts of e-commerce giants.
The US-India Business Council, a leading US lobby group, this week outlined India’s proposed new ecommerce rules regarding internal memos.
Thomson Reuters 2021