Competition Commission of India Imposes ₹500 Crore Penalty on E-Commerce Giant for Anti-Competitive Practices
- ByAdmin --
- 06 Mar 2025 --
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In a major regulatory crackdown, the Competition Commission of India (CCI) has imposed a ₹500 crore penalty on a leading e-commerce platform for indulging in anti-competitive practices, including preferential treatment of in-house sellers and deep discounting practices that harmed smaller retailers.
The penalty follows a detailed investigation triggered by complaints from offline retailers associations and independent sellers, who alleged that the platform was using its dominant position to favour select sellers linked to its corporate structure.
Findings of the CCI Investigation
The commission’s order documented:
- Unfair Platform Bias: Internal data showed the platform’s algorithms systematically boosted visibility for products sold by in-house sellers.
- Predatory Pricing: The platform funded deep discounts for preferred sellers, driving independent competitors out of the market.
- Market Manipulation: Certain product categories were manipulated to create artificial scarcity, leading to price inflation after competitors exited.
Why This Is Significant
This case reinforces that digital monopolies are not exempt from India’s competition laws, and signals that the CCI will actively intervene to level the playing field in the rapidly growing e-commerce sector. It’s also expected to influence platform regulation policies, especially under India’s proposed Digital Competition Bill.
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