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LATEST NEWS UPDATES | CAIT to PM Modi: E-commerce firms monopolising market by violating FDI policy; poor action hurting MSMEs -Sandeep Soni

CAIT to PM Modi: E-commerce firms monopolising market by violating FDI policy; poor action hurting MSMEs -Sandeep Soni

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published Published on Nov 29, 2020   modified Modified on Nov 30, 2020

-Financial Express

Big e-commerce companies having deep pockets are leaving no stone unturned in monopolizing the e-commerce business and retail trade of India with their malpractices and violating FDI policy, traders’ body Confederation of All India Traders (CAIT) said in a letter to Prime Minister Narendra Modi on Sunday. CAIT, which has been campaigning against Amazon and Flipkart for years now alleging unethical business practices by them, said that the absence of concrete action against e-commerce companies has led to a roadblock for small businesses to run their operations online.

The confederation called it “most unfortunate” that “various government authorities have failed to protect the sanctity of the policy and law of the government,” according to the letter. CAIT has been long alleging that the online marketplaces have been undertaking “predatory pricing, deep discounting, loss funding and exclusivity of various products, which are not allowed under the FDI policy,” it had said in a statement last year. However, both Amazon and Flipkart have repeatedly claimed complete compliance with the FDI laws.

The Modi government had last year asked the e-commerce companies with FDI to maintain a report to confirm compliance. “Against Sl. No. 15.2.3, for entry (p), the following entry shall be substituted, namely;- (p) e-commerce marketplace entity with FDI shall have to obtain and maintain a report of statutory auditor by 30th of September every year for the preceding financial year confirming compliance of the e-commerce guidelines,” according to a notification by the Ministry of Finance on December 5, 2019, announcing the amendments made in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.

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Financial Express, 29 November, 2020, https://www.financialexpress.com/industry/sme/msme-eodb-cait-to-pm-modi-e-commerce-firms-monopolising-market-by-violating-fdi-policy-poor-action-hurting-msmes/2139235/


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