CCI begins Market Study on E-Commerce in India

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New Delhi: With a view to develop a better understanding of the functioning of fast growing e-commerce sector and its implications for markets and competition, the Competition Commission of India (CCI) is conducting a Market Study on the sector in India.

The objective of the study is to study market trends with a particular focus on emerging distribution methods and strategies in response to ecommerce. The study also intends to understand business practices and contractual provisions in ecommerce, their underlying rationale and implications for competition and to identify impediments to competition, if any, relating to ecommerce. The study also aims to ascertain enforcement and advocacy priorities for the CCI in e-commerce.

The preliminary findings of the study will be presented at a Workshop to be held in the end of August 2019. All relevant stakeholders will be invited to share their views and deliberate on identified issues at this workshop. The final study report is expected to be published in the third quarter of 2019-20.

The e-commerce study is 20th in the series of market studies that have been conducted by the CCI till date. Market studies contribute significantly to the capacity of competition authorities in appreciating competitive dynamics in markets and can also form a useful basis for competition advocacy. The e-commerce study does not form part of any investigation and/or inquiry in any of the proceedings pending before the CCI. The study of e-commerce is necessary given the novel issues and challenges that digital markets bring forth for competition regulation.

The enterprises concerned include e-commerce platforms, manufacturers, wholesalers/ retailers, hotels, restaurants and payment systems. The study intends to cover such products where the growth of online commerce has been the most significant, including both goods (such as electronics, mobiles, lifestyle etc.) and services (travel & hospitality, food delivery). The focus areas of the study include the emerging trends in business models and distribution mechanisms, market structure and business practices including contractual provisions and vertical restraints.

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