Mint Quick Edit | Goyal’s angst: Online platforms are using predatory pricing

Goyal’s rather blunt expression of e-commerce platforms using predatory pricing, makes the government’s growing displeasure clear.  (PTI)
Goyal’s rather blunt expression of e-commerce platforms using predatory pricing, makes the government’s growing displeasure clear. (PTI)

Summary

  • Commerce minister Piyush Goyal is concerned about e-commerce platforms using predatory pricing to the detriment of traditional retailers who deserve a level-playing field. That said, e-commerce is helping consumers and small businesses. We need a measured approach.

Commerce minister Piyush Goyal has raised concerns over e-commerce platforms using predatory pricing to the detriment of traditional retailers. Goyal said the large amounts of investments being made by these platforms in India were to fund the losses that he suggested were a result of such pricing. 

“Are we going to cause huge, social disruption with this massive growth of e-commerce? I don’t see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern," he said. Such charges have been made previously too, but the platforms have denied them. 

Also read: ’Amazon investment won’t support Indian economy’: Piyush Goyal flags ‘predatory price’ risks for local retailers

Goyal’s rather blunt expression, however, makes the government’s growing displeasure clear. He didn’t say if any action is being planned. To be sure, declining footfalls for many brick-and-mortar retailers have led to survival worries and fear of job losses. 

A level playing field is, therefore, necessary to compete fairly. That said, online retail has broadened choice for consumers and is helping small businesses sell more widely and easily. Its vast growth prospects also promise immense gains for the economy. A measured approach is needed.

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