Flipkart stops sellers from changing prices of goods: Violation of FDI policy? – Trak.in

Following the changes in Flipkart’s commission rates in May, many sellers on the e-commerce platform have been unable to adjust their prices for over a month.

Flipkart Commission Rates Controversy and Sellers’ Allegations

These commission rates are imposed by Walmart.

The sellers, who asked not to be identified, said the changes violate India’s foreign direct investment (FDI) e-commerce policy and favor larger sellers over smaller ones, raising concerns about anti-competitive practices.

Since the Ministry of Commerce has not received a response to the inquiries, it appears that senior government officials are unaware of this situation.

Trade union leader and Member of Parliament Praveen Khandelwal emphasised that e-commerce platforms like Flipkart cannot dictate prices, emphasising their role as facilitators rather than price influencers.

Sources privy to the developments suggest that Flipkart’s clampdown on price changes could be a strategy to ensure that lower commissions directly benefit consumers. The new rate sheet simplifies commission structures to increase transparency, but has left sellers feeling unfairly treated as they have not been given enough time to adjust.

Claiming that the policy is aimed at transparently supporting seller growth, Flipkart in its response assured compliance with FDI regulations and denied that it had an impact on prices. They highlight ongoing efforts to educate sellers about policy changes and improve operational efficiency.

Screenshots from eight merchants were analyzed and confirmed that they were unable to change prices despite repeated requests for technical support.

Concerns about fairness and equity in Flipkart seller pricing policy

Vendors cite system prompts such as “System Update: Keep patches closer to historical billing value,” making it difficult to raise prices that would lead to higher payouts based on historical billing averages.

Unlike larger peers, who are reported to receive preferential treatment, concerns have been raised by smaller retailers that do not have dedicated key account managers.

This imbalance could potentially violate antitrust laws by favoring larger sellers and limiting market fairness, legal experts say.

There has been widespread outrage over Flipkart’s pricing policy, which has led to accusations of market manipulation and potential regulatory scrutiny for discriminatory practices based on seller size.

This sheds light on the ongoing challenges of balancing e-commerce regulation with market competition and fair business practices.

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