Get subscribed to our newsletter
Get interesting updates to your email inbox.
The Competition Commission of India (CCI) has launched an investigation to find out if the exclusive arrangements, deep discounting and preferential listing by e-commerce marketplaces like Amazon and Flipkart for mobile phones are causing an adverse effect on competition.
The CCI on Monday passed directions for investigation under Section 26(1) of the Competition Act, 2002. The order was passed by Ashok Kumar Gupta, chairman, Sangeeta Verma and Bhagwant Singh Bishnoi, both members.
In a 11 page order, the CCI observed that the exclusive arrangements between smartphone/mobile phone brands and e-commerce platform/select sellers selling exclusively on either of the platforms, coupled with the allegation of linkages between these preferred sellers and e-commerce companies merits an investigation.
The CCI noted that though these platforms are used for selling various categories of products, for some categories the online channel constitutes a predominant channel of distribution. Smartphones is one such category of product. The Informant has claimed that Amazon and Flipkart had 36 per cent and 53 per cent market share, respectively, in the market for smartphones sold on online marketplaces in India in the first quarter of the year 2019.
On careful perusal of allegations levelled by the Informant and the documents provided, the Commission noted that there are four alleged practices on the marketplaces, namely, exclusive launch of mobile phones, preferred sellers on the marketplaces, deep discounting and preferential listing/promotion of private labels.
The first issue under examination is that of the exclusive launch of mobile phones on the two major e-commerce platforms. The Informant has provided a list of phones which were exclusively launched on the platforms. The Informant has provided the following evidence in the form of text messages to indicate that due to partnership between mobile manufacturer (Vivo Z1x and Vivo U10 models) and platforms (Flipkart and Amazon), offline retailers are forced to purchase smartphones either from manufacturers’ e-stores or from the platforms e-portals.
The Commission has also noted several reports in the media as well as advertisements by e-commerce portals regarding exclusive launches. Mobile manufacturing companies like One Plus, OPPO, and Samsung have exclusively launched several of their models on Amazon. Similarly, Vivo, Realme, Xiomi etc., have exclusively launched several of their models on Flipkart. In 2018, Flipkart launched 67 mobile phones and Amazon launched 45 mobile phones exclusively on its platform. 2 Thus, it appears that these mobile manufacturers partner with the e-commerce platforms and their brands are sold by the platforms’ exclusive sellers.
“It needs to be investigated whether the alleged exclusive arrangements, deep-discounting and preferential listing by the opposite parties (Ops) are being used as an exclusionary tactic to foreclose competition and are resulting in an appreciable adverse effect on competition contravening the provisions of Section 3 (1) read with Section 3(4) of the Act,” the order said.
“In view of the foregoing, the Commission is of the opinion that there exists a prima facie case which requires an investigation by the Director General (‘DG’), to determine whether the conduct of the OPs have resulted in contravention of the provisions of Section 3(1) of the Act read with Section 3(4) thereof, as detailed in this order,” it added.
Accordingly, the Commission directs the DG to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act. The Commission also directs the DG to complete the investigation and submit the investigation report within a period of 60 days from the receipt of this order.
The case was filed by Delhi Vyapar Mahasangh as the informant versus Flipkart Internet, owned by Walmart and Amazon Sellers, as opposite parties.
The traders body has stated that the that there are instances of several vertical agreements between Flipkart with their preferred sellers on the platform and Amazon with their preferred sellers, respectively which have led to a foreclosure of other non-preferred traders or sellers from these online marketplaces. It has been alleged that most of these preferred sellers are affiliated with or controlled by Flipkart or Amazon, either directly or indirectly.
On deep discounting, the complaint says that Flipkart provides deep discounts to a select few preferred sellers (such as Omnitech Retail) on its platform which adversely impacts non-preferred sellers such as members of the Informant from competing with such sellers on Flipkart’s online platform.
Similarly, Amazon has preferred sellers on its platform namely Cloudtail India (a joint venture between Amazon and Catamaran Ventures) and Appario Retail (a wholly owned subsidiary of a joint venture between Amazon and Ashok Patni which received a round of investment from Frontizo Business Services Ltd.) which are related to Amazon. Similar allegations of deep discounts by Amazon to the detriment of non-preferred sellers have been levelled.
On exclusive tie-ups and private labels, the complaint said that both the e-commerce players have several tie-ups and private labels which get more preference in terms of sales. The OPs’ private label brands, sold through their platforms, are routed through a few preferential sellers.
It is submitted by the Informant that this modus operandi is being employed by Flipkart across all categories, including smartphones. It is alleged that by having exclusive tie-ups in the relevant market with the smartphone companies, it provides exclusivity through discounting and preferential listings.
This leads to other competitors being excluded and foreclosed from the market. It is stated that any benefit to the consumers is only apparent at the initial stage till critical mass of network effects is reached or competitors are eliminated.
“This arrangement has far-reaching consequences on the economy as the non-preferred sellers are relegated to sell only through traditional brick and mortar set-up which involves significant fixed costs and are devoid of wide pan-India reach which online marketplaces offer,” the complaint said.
Based on the evidence adduced by the Informant and information available in the public domain, it can be prima facie inferred, CCI said that there appears to be exclusive partnership between smartphone manufacturers and e-commerce platforms for exclusive launch of smartphone brands. Thus, exclusive launch coupled with preferential treatment to a few sellers and the discounting practices create an ecosystem that may lead to an appreciable adverse effect on competition, the order said. (IANS)
Diwali is arguably one of the most auspicious and celebrated holidays in South Asia. It is celebrated over the span of five days, where the third is considered most important and known as Diwali. During Diwali people come together to light, lamps, and diyas, savour sweet delicacies and pray to the lord. The day has various origin stories with the main them being the victory of good over evil. While the North celebrates the return of Lord Rama and Devi Sita to Ayodhya, the South rejoices in the victory of Lord Krishna and his consort Satyabhama over evil Narakasura.
Narakasura- The great mythical demon King
Naraka or Narakasur was the son of Bhudevi (Goddess Earth) and fathered either by the Varaha incarnation of Vishnu or Hiranyaksha. He grew to be a powerful demon king and became the legendary progenitor of all three dynasties of Pragjyotisha-Kamarupa, and the founding ruler of the legendary Bhauma dynasty of Pragjyotisha.
Follow NewsGram on Instagram to keep yourself updated.
Narakasura was created, grew up to be strong and powerful but he was not satisfied with it, so he decided that he would worship Lord Brahma. He performed severe penance and was driven by the power of his penance; Lord Brahma appeared before him. Narakasura knew his mother loved him dearly so he asked Lord Brahma to grant him a boon that he would only die by the hands of his mother, Bhumidevi. Lord Brahma smile and ultimately granted him the boon.
Narakasura burst out laughing as Lord Brahma vanished. He thought no mother would kill their child so Lord Brahma had made him immortal. Drunk and maddened by his own power Narakasura brought all the kingdoms under his control and targeted Swargalok (Heaven). Even Indra (King of Gods) and demi-gods had to retreat in front of Narakasura. He kidnapped and took 16,000 women from the palaces as prisoners. Troubled by Naraksura's deeds the gods rushed to Lord Vishnu for a solution.
Lord Krishna and Devi Satyabhama were born to kill Narakasura
Lord Vishnu was born as Lord Krishna and Narakasura's mother Bhumidevi took the avatar of Krishna's wife Satyabhama. As Satyabhama, Bhumidevi was unaware of the knowledge of Naraksura being her son. Aditi the mother of all gods approached Satyabhama crying for help with bloodied ears as Narakasura had torn off the glowing earrings from the ears of Aditi.
Satyabhama was furious on gaining the knowledge of Narakasura's atrocities she asked Krishna to fight the demon king while she fights alongside him. Krishna agreed and they attacked the great fortress of Narakasura, riding his mount Garuda with his wife Satyabhama.
The furious battle unleashed. Krishna defeated Narakasura's general Mura and came to be known as Murari (the killer of Mura). Narakasura used several divine weapons against Krishna, but Krishna slew all those weapons effortlessly. The demon hurled a shakti towards Krishna, which mildly hurt Krishna and he fell unconscious. Upon this sight Satyabhama was enraged, she furiously pulled out a weapon of her own and hurled it at Narakasura's chest. Anxious Satyabhama turned to her fallen Lord, Krishna got up with a smile and he was completely fine. He was only playing his part. It was Satyabhama who was an incarnation of Bhoomidevi, whose hands were destined to slay Narakasura.
ALSO READ: Choosing Environment-Friendly Diwali
Lord Krishna and Goddess Satyabhama had put an end to the Narakasura's kingdom of evil. As Narakasura lay on his deathbed he realised that Satyabhama was no one but an avatar of his own mother. He requested a boon from his mother, for no one to mourn his death. Instead, he wished for people to celebrate it with light and colours. They freed the 16,000 women who later married Lord Krishna to restore them of their honour in society, retrieved Mother goddess's earrings. This day is celebrated as 'Naraka Chaturdashi' popularly known as Choti Diwali - the day before Diwali as the triumph of good over evil.
Keywords: Diwali festival, goddess Laxmi, demon king, Lord Krishna, Satyabhama, the festival of light, Naraksura, Narak Chaturdashi
For all the great inventions that we have at hand, it is amazing how we keep going back to the safety pin every single time to fix everything. Be it tears in our clothes, to fix our broken things, to clean our teeth and nails when toothpicks are unavailable, to accessorize our clothes, and of course, as an integral part of the Indian saree. Safety pins are a must-have in our homes. But how did they come about at all?
The safety pin was invented at a time when brooches existed. They were used by the Greeks and Romans quite extensively. A man named Walter Hunt picked up a piece of brass and coiled it into the safety pin we know today. He did it just to pay off his debt. He even sold the patent rights of this seemingly insignificant invention just so that his debtors would leave him alone.
Anyone wearing safety pins that were visible began to be associated with the rock movement in the 70s. Image credit: Wikimedia Commons
Later, he even invented the sewing needles and a couple of other important inventions but never kept any of the patent rights.
When the punk rock tradition took over in the seventies, safety pins became a fashion rage. They were used as piercings and to patch clothes together. Anyone wearing safety pins that were visible began to be associated with the rock movement. In some cultures, the safety pins have become symbols of good luck.
Keywords: Safety-pins, Punk Rock, Brass, Accessories, Walter Hunt
In South India, Deepavali marks the end of the monsoon and heralds the start of winter. The festival is usually observed in the weeks following heavy rain, and just before the first cold spell in the peninsula. The light and laughter that comes with the almost week-long celebration are certainly warm to the bones, but there is still a tradition that the South Indians follow to ease their transition from humidity to the cold.
Just before the main festival, the family bathes in sesame oil. This tradition is called 'yellu yennai snaana' in Kannada, or 'ennai kuliyal' in Tamil, which translates to 'sesame oil bath'. The eldest member of the family applies three drops of heated oil on each member's head. They must massage this oil into their hair and body. The oil is allowed to soak in for a while, anywhere between twenty minutes to an hour. After this, they must wash with warm water before sunrise.
Women applying oil to the heads of men Photo credit: Indians in Kuwait
In some parts of the peninsula, soap is not used to wash off the oil because it nullifies its effects. Some cultures who do not like the oil to remain in any way on their skin wash it off with shikakai and herbs, which is a paste that is traditionally used as a substitute for soap. Sometimes, the oil is heated with flowers and spices as well and is less sticky than in its pure form.
The purpose of this ritual is to cleanse the body, detoxify it, and produce heat in it. Sesame is a very heaty substance and tends to heat up the body. This heat, or 'usshna' in Kannada, prepares the body to face the sudden cold that comes to the peninsula immediately after Diwali. South India has no smooth transition weather-wise from monsoon to winter. There are a few days of stable, rainless weather, and suddenly the cold winds descend.
In many ways, the celebration of Diwali is centered around preparing for winter, considering the amount of heat and light the rituals consist of – lighting lamps, bursting crackers, and consuming warm treats. Those who practice these rituals earnestly find the shift in seasons and weather quite pleasant.
Keyboards: Sesame Oil Bath, Diwali Ritual, Traditional Sesame Oil Bath