Asserting that sellers on Amazon set their prices independently, Gopal Pillai, VP Seller Services, Amazon India, dismissed all allegations of deep discounting and predatory pricing by the retail giant, IANS reported. “Amazon is a 100 per cent pure marketplace in India. Sellers set the prices on their own. We do not interfere there at all,” he reportedly said.
This clarification comes a week after the Confederation of All India Traders (CAIT) sent a letter (available below) to the Prime Minister, asking for the government’s intervention given “unethical & unfair business practices” of online retailers like Amazon and Flipkart that flout FDI norms. The letter had called out practices such as “deep discount[ing], indulging into predatory pricing, controlling inventory, having exclusivity of products, maintaining preferential seller system”. Pillai, however, said that Amazon follows government rules “very carefully” and has been compliant.
The Department of Promotion of Industry and Internal Trade (DPIIT) is already reviewing the responses that e-commerce players had sent to a questionnaire over their adherence to FDI norms, IANS reported.