Comment on the prevalence of anti-competitive practices in the Indian e-commerce sector.

The boom in the e-commerce sector has made life more convenient and easier. It has radically changed various aspects of our everyday lives ranging across traveling, entertainment, education, shopping, communication and even getting food.

E-commerce:

• E-commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet
• It comprises products, both digital and physical, and services traded on digital and electronic networks.

Benefits of e-commerce:

• Round the clock availability of virtual stores.
• Flexibility.
• Increased and fast accessibility.
• Wider range of options.
• No geographical barrier.
• Lower costs making it more competitive.

Anti-competitive practices of e-commerce:

• E-commerce giants have caused significant damage to small and medium online businesses by using predatory pricing strategies and huge discounts and cashbacks etc.
• The giant e-commerce companies deliberately reduce the prices to loss-making levels to acquire more customers and eliminate smaller players from the market.
• In the long run, it reduces competition and in turn will reduce the bargaining power of consumers, while subjecting them to arbitrariness of monopolistic conduct.

Way Forward:

• Democratization of e-commerce space by promoting government-backed Open Network for Digital Commerce (ONDC).
• Appointment of a Compliance Officer and a nodal contact person.
• Strong grievance redressal mechanism.
• Restriction on unfair trade practices and clear-cut definition of what constitutes Unfair Trade Practices.