The event noticed presence of representatives of small retailers, sellers, distributors together with All India Online Vendors Association (AIOVA), Swadeshi Jagran Manch, All India Consumer Products Distributors Federation, All India Mobile Retailers’ Association and the Federation of All India Distributors Association (FAIDA). Together, they named themselves Indian Sellers’ Collective to counter Amazon’s Smbhav event.
Speakers at the event known as for motion in opposition to alleged preferential remedy by Amazon to its unique manufacturers reminiscent of Cloudtail and RetailNet. Citing a Reuters report, Abir Roy, co-founder and Advocate, Sarvada Legal mentioned, “Only 35 sellers account for 66% of the commerce on Amazon. This means 0.01 per cent merchants represent 66% of the commerce on Amazon. The situation is degree taking part in area. There’s completely no degree taking part in area between their most popular sellers and different sellers.”
He accused Amazon of controlling sellers’ costs calling it unfair and gave the analogy of a shopping center the place as an alternative of the store, the mall decides the costs of its items.
Adding to his assertion, MM Sharma from Vaish Associates, who heads the Competition Law & Policy of the agency mentioned such abuse by dominance is frequent amongst all tech giants. He talked about that such abuse begins with excluding the rivals on their platform, referring to the alleged preferential remedy of main on-line marketplaces.
“Not solely rivals however potential rivals reminiscent of rising startups, as a result of they’ll foresee the market potential of a specific startup. So they begin excluding the startups from the start and have unique preparations with their most popular distributors,” he mentioned.
He defined that such massive marketplaces typically have a lot extra knowledge from prospects and the second they develop into robust, they begin leveraging the information to get revenue from their most popular sellers.