On Friday, leading Indian Trader asks the government to ban the upcoming festive sale on Amazon’s local unit and its competitor Flipkart. The reason for the oppose because both the e-commerce companies are giving a deep discount to their customers which violated the country’s foreign investment rules for online retail.
Amazon and Flipkart hold annual festive season sales ahead of key Hindu festivals Dussehra and Diwali, which are due this year in October when Indians make big-ticket purchases such as cars and gold jewellery.
Walmart owned and announced Flipkart’s six days sale which begins from 29th September, but Amazon not yet announced. Both e-tailers promise big discounts on everything from fashion to smartphones to home appliances and have previously said discounts and deals are offered by sellers on their platforms.
“By offering deep discounts ranging from 10% to 80% on their e-commerce portals, these companies are clearly influencing the prices and create an uneven level playing field which is in direct contravention of the policy,” the Confederation of All India Traders (CAIT) said in a letter to the federal trade minister.
In India, CAIT represent 500,000 merchant traders, they also demanded a ‘blanket ban’ on such sales and asked the government to probe the potential violation of FDI norms.
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