Commerce Minister Piyush Goyal has caused a stir with US e-commerce giants such as Amazon and Walmart, accusing them of arrogance and defamation of Indian law by following deceptive pricing practices.
Mr Goyal said that companies It̵7;s taking their scale and access to a lot of low-cost funding to indulge in predatory pricing practices “to the detriment of mom-and-pop stores.”
“A number of these big e-commerce companies have come into India and have blatantly underestimated the law of land in many ways,” he told a virtual event on Saturday.
“I have been in contact with these large companies many times. especially American companies And I see a little arrogance,” he said.
Mr Goyal did not directly name Amazon.com or Walmart’s Flipkart, the two major e-commerce players in the country. or indicate which laws are violated But his comments come at a time when India’s retailers and retailers clamor. which accuses US giants that circumvents the country’s consumer protection laws and competition laws.
Amazon and Flipkart did not immediately respond to requests for comment on the minister’s harsh criticism.
Both companies have denied the allegations that level traders are against them.
Piyush Goyal has also criticized companies for indulging in It has “forum shopping” in court and has failed to comply with an investigation launched by the Competition Commission of India (CCI).
Flipkart and Amazon have appealed against CCI’s bid to restart an investigation into their business practices. After a judge this month ignored the company’s original testimony,
“For my thoughts If they have nothing to hide If they are doing business honestly Why aren’t they responding to CCI?” Mr Goyal said at a virtual event hosted by the Stanford India Policy and Economics Club.
His comments come days after a new set of e-commerce rules were revealed that could undermine Amazon and Flipkart’s ambitions in the country and force the two to review some business structures.
In other words, in a letter to Prime Minister Narendra Modi on Sunday All India Merchant Union accuses e-commerce companies of treating India as “Banana Republic” with weak laws
The agency urged the government to ensure that the proposed e-commerce rules are not diluted. Despite the e-commerce giant’s lobbying efforts
US-India Business Council which is the leading lobby group in the United States. Explain the proposed new ecommerce rules related to the record within this week.