Rivals Flipkart, Amazon line up allies to jointly fight new e-commerce policy: Report
Online marketplace giants Flipkart and Amazon are planning to team up to voice concerns against the new e-commerce policy, according to a Business Standard report.
e-commerce platforms are planning to take the help of Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) and investment giants such as SoftBank, Tiger Global and Naspers to hold a dialogue with the government.
These firms are set to suffer a big blow as the government has barred them from selling their own goods, while also putting an end to deep discounts and cashback schemes offered by them in the policy.
"There is tangible fear that the government might enact a policy that makes it unviable for Amazon and Flipkart to continue their business here. They will have to completely revamp the way they work and whatever they have achieved in the country till now would all dial back to zero. The sector is now planning to take the help of industry bodies such as CII and FICCI, as approaching the government via them would be much smoother," a source told the paper.
Experts are of the view that Amazon and Flipkart are being unnecessarily targeted as offline retailers have for long owned private labels, the report said.
"Physical retailers also have private labels. It is a legitimate business practice. There is no reason to single out e-commerce firms. It is not a publicly held firm, so they have every right to run with their business plans. Let the Competition Commission of India (CCI) look into any issues if there are any," Arvind Singhal, Chairman, Technopak Advisors, told the paper.