CCI recommends transparent discount policy by e-commerce firms

The Competition Commission of India (CCI) recently released a Report titled ‘Market Study on E-commerce in India: Key Findings and Observations’ which has strongly advised e-commerce firms to adopt stricter self-regulation norms on most of the critical operational parameters including pricing.  ( https://www.cci.gov.in/sites/default/files/whats_newdocument/Market-study-on-e-Commerce-in-India.pdf).

While acknowledging that the growth of e-commerce business has expanded the domestic retail market and given a new dimension to it, the CCI report strongly pitched for adopting more transparent norms. For instance, the report has advised that there should be more clarity on the discount policy of the firms. “Bring out clear and transparent policies on discounts, including inter alia the basis of discount rates funded by platforms for different products/suppliers and the implications of participation/non-participation in discount schemes,” the commission said.

The Market Study on E-commerce in India (‘the study’) was initiated by the CCI in April 2019 with a view to better understand the functioning of e-commerce in India and its implications for markets and competition. The objective was also to identify impediments to competition, if any, emerging from e-commerce and to ascertain the Commission’s enforcement and advocacy priorities in light of the same.

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