CASE ANALYSIS: MOHIT MANGLANI VS. MS FLIPKART INDIA PVT. LTD AND ORS
Mohit Manglani's case against major e-commerce players like Flipkart India Pvt Ltd sheds light on liability concerns within the online retail industry. Filed under Section 19(1)(a) of the Indian Competition Act, 2002, the complaint questions the responsibility of platforms like Flipkart in facilitating sales to third parties.
Allegations suggest that by engaging in exclusive agreements with retailers, these e-commerce platforms are participating in anti-competitive practices, violating Sections 3(1), 3(4)(b), and 3(4)(c) of the Act. Additionally, they are accused of abusing their dominant market position, as per Section 4 of the Act. Instances cited include the exclusive availability of Chetan Bhagat's book "Half Girlfriend" on Flipkart's website, highlighting anti-competitive effects.
The informant argues that the respondents' actions restrict customer options in terms of purchase terms and prices. The rigidity of non-negotiable terms like delivery timeframes, prices, payment terms, and quality requirements undermines competition, violating Sections 3(1), 3(4)(b) & (c), and 4(a)(i), 4(b)(i), and 4(b)(ii) of the Act.
In response, the defendants challenge the informant's notion of defining the appropriate product market, arguing against considering all items together. They stress the importance of identifying interchangeable or substitutable items to determine the relevant market, including those imposing price constraints. Furthermore, they emphasize that the method of acquisition remains the same whether through online portals or physical stores.
The Commission noted that consumers can evaluate pricing and the benefits and drawbacks of products through the OPs' online distribution channels. Additionally, by having the option of doorstep delivery, customers can accept the purchase whenever it's convenient for them and don't have to dedicate several hours to purchasing a brick-and-mortar store.E-commerce platforms have given consumers another effective way to distribute their goods, and they will only continue to expand in the years to come.An example of this is the recent surge in e-commerce retail platforms and the fierce rivalry from new players. However, in order to effectively and ideally regulate the market, legislators and law enforcement organizations must recognize the fundamental variations among online platforms and address concerns such as collective dominance in a manner appropriate to those characteristics.The influence exclusivity agreements have on customer choice and access must be taken into account while evaluating their impacts. In this sense, even though CCI has determined that web portal distribution methods give customers the ability to compare costs, they don't quite meet the bill to cover the void left by product monopoly.