![]() ![]() Therefore, the argument that online platforms are not in a dominant position is an illogical argument or rather an argument which need proper statistical backing. ![]() So given this fact, the consumers will choose online shopping over the offline one when it offers attractive discounts. In case where the issues are purely between two online entities then the aspect brick and motor stores should not be included in the relevant geographic market because it overthrows the “fair competition” concept.Įven though there are considerable number of consumers who prefer offline shopping, the technological advancements have made shopping much simpler and cheaper. and Ors ” the commission observed that “Irrespective of whether we consider e-portal market as a separate relevant product market or as a sub-segment of the market for distribution, none of the OPs seems to be individually dominant”. The determining the relevant geographic market should not only depend upon the substitute products that are available but it should also require an analysis of the issue at hand in a case. This being the fact, in order to determine the competition, only the online portals should have been considered as a relevant geographic market because most of the consumers tend to compare prices of a product in different web portals like Amazon, Flipkart, Snapdeal etc. In my opinions, this judgement slightly flawed because the whole issue in this case is that a party was selling products at a competitive price in a “web portal”. In this case, the commission while considering the relevant geographic market, included both the Offline and online market to analyse whether the company San disk was enjoying a monopolistic position. While addressing the concept of predatory pricing in E-commerce market, the case of Mr. The E-commerce market having the new way of delivering products to the consumers have attracted quite a number of consumer base even though the CCI has held that it doesn’t enjoy a dominant position over the brick and motor shops. Therefore, the Competition commission of India (hereinafter referred as CCI) has observed that the E-commerce market doesn’t not enjoy a dominant position in the market for the case to fall under the ambit of predatory pricing. E-commerce market started to develop in the mid-2000s. One of the significant pre-requisites to determine the prima facie case in the predatory pricing case is that the company should be in a dominant position. Since 2002 the competition law policy has been going through a lot of amendments according to the trends of the market and it has been ever growing. Hence this calls for a regulation of the market competition in the E-commerce sector. This has resulted in entry of number of players into E-commerce business. Every house hold has in fact started buying millions of products right from the place they are. On one side of the coin the E- commerce houses have created a lot of jobs and ease of doing business and contributed considerably to the growth of economy, on the other side of the coin it has also taken down the tradition of retail shopping to an extent and created deep discount culture making it difficult for the brick and shop owners to sell at such a low price. SIGNIFICANCE OF E-COMMERCE MARKET:Į-commerce sector has become the flag bearer when it comes to technological developments in the 21 st century. This article specifically focuses on predatory pricing with reference to E-commerce market in India. The Competition law outlaws the predatory pricing strategies making it violative under Section 4. It does not only create a threat among the player in that particular market but also it creates a threat in the relevant or substitute product market. The consequences of having a predatory pricing strategy can be vast. When the companies act in a predatory manner by selling at an extremely low price to drive the competitors out of the market, it is called predatory pricing strategy. ![]() How well the consumers respond to the change in price can affect the product pricing in the market. One significant factor that can influence the business in pricing their product can be the market conditions such as elasticity of demand, the brand value of the product etc. The predatory pricing is nothing but an act of a company setting its price of its products so low that the other players in the market find it difficult to sustain their business and eventually they have to exist the market. It is always right to think that the businesses to gain profit will always come up with a loophole to achieve it. Whether such business strategy and agreement are violating the market competition or not is the key factor in deciding the fate of other businesses in the market. It always takes only one smart business strategy to win monopoly in the market.
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