This article was first published in Deccan Chronicle. Views are personal.
Earlier this month, the Competition Commission of India dismissed an anti-trust case against Amazon. Here is some context. The Dutch apparel company Beverly Hills Polo Club (BHPC) approached CCI, claiming that Amazon had been indulging in anti-competitive practices. They had plenty of allegations, and strong evidence to support their claim. Let me go through them one at a time.
1. BHPC claimed that they do not sell on Amazon and rely on their own website (and Tata Cliq) for selling their products. However, Amazon offers similar products at a deeply discounted rate which makes it unviable for BHPC to compete with the prices being offered. Sacrificing profit for market share has long been Amazon’s approach to business and its deep pockets give it the financial muscle to do that.