The Forum for Internet Retailers, Sellers and Traders (FIRST), part of the India SME Forum, has lodged a complaint with the Competition Commission of India against Flipkart. They claim that Flipkart’s actions distorted competition on its platform by engaging in predatory and discriminatory practices. Allegations include GST avoidance leading to a fund of around Rs 3,000 crore, enabling deep discounts that undercut independent sellers.
The complaint also accuses Flipkart of favoring 33 specific sellers, allowing them to list products below cost and disadvantaging other sellers on the marketplace. FIRST asserts that despite regulations, Flipkart operates an inventory-led model rather than a marketplace as permitted under India’s foreign direct investment rules for e-commerce.
In response, Flipkart stated that it adheres to all laws and regulations and is willing to cooperate with any regulatory investigation. The company emphasized its support for over 1.4 million sellers, including MSMEs and small businesses, aiming to provide value to sellers, consumers, and the digital commerce ecosystem.
As Flipkart gears up for a public listing, the complaint adds to the existing regulatory scrutiny faced by major e-commerce platforms. Allegations of preferential treatment, deep discounting, and marketplace neutrality have put such platforms under increased regulatory review.
