Indian traders up in arms against e-commerce giants Amazon & Flipkart

Confederation of All India Traders, a national body representing Indian traders and retailers, is launching a massive country-wide protest against multinational e-commerce giants Amazon and Flipkart. The body that has been vocal against foreign retail majors for years, today in the national capital announced a drive to “prosecute” the two behemoths.

“In light of the recently released report by the Competition Commission of India (CCI), which highlights serious anti-competitive practices by e-commerce giants Amazon and Flipkart, the traders across the country, under the leadership of CAIT, are set to launch a massive nationwide campaign demanding prosecution of these companies,” it said in a statement. More than 350 trade leaders in a unanimous resolution pointed towards alleged irregularities in the operations of Amazon & Flipkart.

“The CCI report has brought to light various unethical practices that have severely impacted small and medium traders. These practices include deep discounting, preferential treatment to select sellers, and the violation of competition norms. The findings further affirm that these e-commerce platforms have been operating in ways that distort the level playing field, causing irreparable damage to lakhs of traders and retailers. Therefore, we urge upon the CCI to take necessary action and prosecute both Amazon & Flipkart without any further delay, to meet the end of justice and ensure fair competition,” they said.

The nationwide campaign is aimed at pressurizing CCI, the apex anti-competitive body in India, “to initiate strict legal proceedings against Amazon and Flipkart for violating Indian laws and damaging the interests of small businesses. The traders will collectively demand immediate and firm action, including prosecution under the relevant sections of the law,” they said today.

Present in the gathering, former union minister & CAIT advisor Smriti Irani emphasized the significant role of small traders in the Indian economy. According to her, small traders currently make up 90% of the retail market in India and contribute 45% to the country’s exports.

In 2023, their business turnover was valued at US$480 billion, which is projected to grow to US$1.3 trillion by 2025. “Hence we need to focus on expanding exports and improving the ease of doing business for traders. As 71% of online orders are fulfilled by small traders, particularly from rural areas, we have to make efforts to assess whether these traders are benefiting from the shift to e-commerce and have to understand the importance of recognizing their potential and providing them the necessary support​,” said Irani.