Flipkart and Amazon jointly command close to 80% market share in the country’s e-commerce sector, according to analysts.
The All India Online Vendors Association (AIOVA) will file a plea in a Mumbai city civil court to join GOQii’s case against Flipkart on behalf of 3,500 online sellers it represents, an AIOVA spokesperson told FE.
“We will be filing to join the case as per the court procedure for civil cases. We will be educating the court regarding anything the court needs to know and to also tell the court that this is not an isolated incident. We are also going to give any facts or data terms that the court might need to reach conclusion in this case,” the spokesperson said.
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The AIOVA has already challenged this modus operandi of Flipkart in the Competition Commission of India (CCI) in the past and that case is currently in the appeal stage in the NCLAT, the spokesperson said. “We are there to help any online seller with any legal assistance that they require and GOQii has requested us to intervene in this matter so that this matter can be resolved in a better way,” the spokesperson added.
The board of AIOVA agreed to the matter a few days back and the organisation is in talks with their counsels to make arrangements for the filings. “We are finalising the paperwork,” the spokesperson said.
GOQii, a California-headquartered preventive healthcare platform last month took Walmart-owned Flipkart to court on charges of predatory pricing. A source had earlier said two of GOQii’s products were sold at about a discount of 70% on Flipkart.
Lawyers representing GOQii had told FE the suit is to restrain the sellers on Flipkart from continuing the sale on the ground that it is without the authority of the plaintiff.
The case is being heard in a Mumbai civil court and so far, the case has had two hearings. In the second hearing which was slated for June 7, the court was not presiding and it has been adjourned to June 26.
Small traders have long been raising a clamour against e-commerce majors Flipkart and Amazon for indulging in predatory pricing. Flipkart and Amazon jointly command close to 80% market share in the country’s e-commerce sector, according to analysts.