CAIT seeks audience with Trump over Amazon, Flipkart biz practices
Traders' body CAIT on Thursday said it has sought an audience with US President Donald Trump, who will be visiting India on February 24-25, to express concern over business practices being followed by American companies like Amazon and Walmart-owned Flipkart in India.
"We will apprise him of the practices being adopted by US companies in India, especially Amazon India and Walmart-controlled Flipkart, to control and dominate retail trade which no country in the world can accept," CAIT Secretary General Praveen Khandelwal said.
The Confederation of All India Traders (CAIT) has been alleging violation of FDI policy rules by American ecommerce majors to the detriment of domestic retailers.
Khandelwal said that besides sending a communication to Trump, CAIT has also requested Commerce Minister Piyush Goyal and Foreign Minister S Jaishankar to facilitate a meeting of CAIT delegation with the US President.
At the invitation of Prime Minister Narendra Modi, Trump is slated to travel to India on February 24 and 25. In addition to New Delhi, he will stop at Ahmedabad in Gujarat to address a joint public meeting with Modi at a stadium.
Earlier in January this year, Fair trade regulator Competition Commission of India (CCI) ordered a probe against Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers.
The order follows a complaint filed by Delhi Vyapar Mahasangh, whose members comprise many traders.
Even in a study conducted by the CCI, it was found that deep discounting on goods and services offered by large online retailers had emerged as a major concern, particularly in case of mobile phones. The fair trade regulator will probe all cases of possible abuse of market dominance.
Releasing the findings of the study and its own observations, the CCI said marketplace platforms need to adopt self-regulatory measures to address all areas of concern flagged in the study and also bring out clear and transparent policies on discounts.
The study, Market Study on Ecommerce in India, was initiated by the regulator in April 2019 with a view to better understand the functioning of ecommerce in India and its implications for markets and competition.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Megha Reddy)