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The Centre has decided and proposed certain amendments to the Competition law of the country for greater accountability and regulation of e-commerce platforms. This is essentially to ensure that the e retailers should not be negatively affecting the local retails by threatening their business.
These amendments have been suggested and proposed by the Competition Law Reviewing Committee under the Corporate Affairs Ministry of India. These amendments are important recommendations and are imperative to the smooth functioning of the market. The e commerce market, with large investment and advantages of home delivery system, is responsible for eliminating the traditional retail market. The problem arises because the cost of maintaining the traditional retail business is higher and those retailers do not offer huge discounts as the e commerce does. The customer base of these e commerce retail outlets is relatively more than any physical retail shop as there is no geographical constraint in the case of e commerce.
The large customer base allows the e commerce to be active and functioning in various states across the country without having to build retail store. The medium of sale that is the websites of these e commerce outlets is widely trusted and offers consumer friendly policies of return and rapid delivery.
Thus, one can notice the unquestionable growth of such e commerce platforms but since they operate with different strategies and in a different manner, there exists a need for change in laws governing them. Due to this practice and changing market trends, many people are losing their jobs to which the Corporate Affairs Minister, Nirmala Sitharam, replied that such impacts will also be assessed by the committee and appropriate actions will be taken by amending the laws to avoid any serious injury to the players in the market.
It is pertinent to note that the anti-trust regulator, that is the Competition Commission of India has taken measures to encourage self-regulation advocacy to aim efficient competition in India that protects the interest of the consumers as well as sustains fair competition.
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