NEW DELHI: Commerce and trade minister Piyush Goyal on Wednesday accused giant e-commerce gamers, corresponding to Amazon, of indulging in predatory pricing to seize a much bigger share and violating FDI guidelines, whereas calling for a overview of insurance policies to make sure that small outlets weren’t put out of enterprise due to the fast progress of on-line commerce.
Goyal alleged that Amazon was passing off fund infusion to put in writing off losses as investments into the nation.”Should you make Rs 6,000 crore loss in a single 12 months, does it not scent of predatory pricing to any of you? What’s the loss for, they aren’t allowed to do any B2C (gross sales). E-commerce platforms legally can’t do any enterprise with customers,” he mentioned.
Present FDI guidelines don’t enable foreign-owned entities corresponding to Amazon or Walmart-controlled Flipkart to promote on to customers or maintain stock. They’re solely allowed to arrange platforms the place sellers can hawk their items. Prior to now, too, Goyal has raised doubts over the operation of e-commerce firms.
Goyal alleged that Amazon was passing off fund infusion to put in writing off losses as investments into the nation.”Should you make Rs 6,000 crore loss in a single 12 months, does it not scent of predatory pricing to any of you? What’s the loss for, they aren’t allowed to do any B2C (gross sales). E-commerce platforms legally can’t do any enterprise with customers,” he mentioned.
Present FDI guidelines don’t enable foreign-owned entities corresponding to Amazon or Walmart-controlled Flipkart to promote on to customers or maintain stock. They’re solely allowed to arrange platforms the place sellers can hawk their items. Prior to now, too, Goyal has raised doubts over the operation of e-commerce firms.
